Foreigners have purchased over 38,900 shares of companies listed on the Yangon Stock Exchange (YSX) during the three months since foreigners were allowed to make trades, state media reported. Of the six companies on the YSX bourse, three are open to foreign trading. Myanmar Thilawa SEZ Holdings saw the highest volume of shares sold to foreigners (27,800), followed by First Myanmar Investment (5700), and Ever Flow River Group (5380).
Yet these are disappointing numbers for the YSX, which had enjoyed steady momentum before the global economic downturn caused by the COVID-19 pandemic. In March, the Securities and Exchange Commission (SEC) allowed foreign trading and added a sixth company, Ever Flow River Group, to the bourse. But by the end of the month, Myanmar had reported its first confirmed cases of COVID-19, international flights and visas had been banned, and many foreigners had left the country. Nevertheless, the SEC is hopeful for a swift recovery when the pandemic dies down. Last week, SEC commissioner U Htay Chun told the Bangkok Post that the Commission is developing new ways for local and foreign investors to trade stocks and bonds. He said that although COVID-19 has impacted trading, “it is fair to say that we are not hit as badly as some developed markets.”
Yet when exactly Myanmar will be open for business remains to be seen. This week, the government extended its international flight and visa ban to the end of the month, and Vice President Henry Van Thio said that the restrictions may continue until the third quarter of this year.
