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Roundup: Myanmar to launch Yangon stock exchange market as scheduled

Xinhua, November 15, 2015 Adjust font size:

Myanmar is scheduled to launch Yangon Exchange Market, the country's first stock exchange on Dec. 9 before the present term of the government ends in next March.

Deputy Finance Minister Dr. Maung Maung Thein told a business talks in Yangon Saturday that the process of opening the country's first stock exchange will continue no matter who is in office as such institution is needed for the country.

According to Maung Maung Thein, Myanmar's only stock exchange is expected to start trading securities with five or more listed companies and a final list of the players will be announced at the opening ceremony as well as the dates for companies to sell their shares.

Listed companies are limited to their shares to sell one time for one company only, he said.

A total of 10 companies have been tentatively selected to act as players in Myanmar's first ever Yangon Stock Exchange Market.

Maung Maung Thein, who is chair of the Securities and Exchange Supervisory Commission, has urged the firms to make collaborative efforts in ensuring the development of the stock market, however warning that it is unsure to make profit within five years since the launching.

As a strategy, he said, Yangon Stock Exchange is set to start as an equity market before moving towards derivative market and future market.

The emerging stock exchange with the abbreviation YEX was originally scheduled to debut in October but was postponed to December to make way for the country's just-ended Nov. 8 election.

The Yangon Stock Exchange will be operated by the Myanmar Economic Bank in partnership with Japan's Tokyo Stock Exchange and Daiwa Securities Group.

Once the operation starts, Myanmar's giant Asia Green Development Bank (AGD), Myanmar Agribusiness Public Corporation (MAPCO)and First Myanmar Investment Co., Ltd. (FMI) will sell their stock share in the market among others.

Every transaction is set to be done in local currency. While the purchase of shares by investors is unlimited, unusually large investment will be scrutinized, according to the ministry.

The commission granted four kinds of services licenses -- underwriters, dealers, brokers and consultants and prescribed different levels of capital requirement for each. The service providers are also allowed to operate with foreign firms under joint ventures in anticipation of speeding up the development of stock market.

Capitalized at 32 billion kyats (over 32 million U.S. dollars), the Yangon Stock Exchange is to be operated under joint venture between Myanmar and Japan with Myanmar Economic Bank (MEB) sharing 51 percent, Japan's Daiwa Institute of Research Ltd 30.25 percent and Japan Exchange Group 18.75 percent.

Myanmar enacted the Securities and Exchange Law in July 2013 to pave the way for the launch of the country's first stock exchange. Enditem