The Yangon Stock Exchange is scheduled to come to life at 9:30 this morning when First Myanmar Investment shares become free to trade electronically, following a pre-launch lockdown during which even the FMI public relations team was turned away.
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The clang of a bell on the floor of Myanmar’s new bourse on Friday marked the start of stock trading in a country that is slowly redefining itself after decades of military rule.
The floor price for FMI shares began at 26,000 kyats (US$22) and shares traded at 31,000 kyats by the time trading ended Friday afternoon, with the stock having reached the upper limit of a daily 5,000 kyats floor and ceiling on stock price fluctuation that is in place to prevent volatility on the bourse. The company was limited to selling 42,610 shares although there was demand for more than 80,000 shares in the morning.
Stay on topic – This helps keep the thread focused on the discussion at hand. Taking into account the number of shares, this puts the total value of FMI at around K610 trillion – just over US$500m.
Be Civil – It’s OK to have a difference in opinion but there’s no need to be a jerk. Demand exceeded supply at the public offering.
FMI has an initial capital investment of Ks727,880 million.
Dr Maung Maung Thein, chairman, Securities Exchange Commission, said that starting back since 1996, they finalized a long journey to reality.
But basic legislation such as a companies act that in developed countries forms the bedrock of a formal financial system remain in limbo and stymies the usefulness of such a stock exchange, which for now is only open to local investors.
“Education is more important than trading”, he said.
“I think listing here is great because it’s going to save me a lot of trips to the office”, said businessman Shine Zaw Aung, who invested in FMI about two years ago and owns more than 100 shares.
The exchange was a “farewell gesture” from President Thein Sein, said Deputy Finance Minister Maung Maung Thein.
Maung Maung Thein has said previously that Thilawa SEZ Holdings, which controls a new industrial zone jointly run by the government and a Japanese consortium, would be the next company to join the exchange, but it is unclear as to when this will happen. Shares with a value between K20,000 and K40,000 – like FMI – can only move K5000 up or down in a single day. Classes have been held in the run up to the exchange’s opening.
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“Our exchange is just starting out”, he added.
