People should not pin their hopes on Myanmar’s new stock exchange even as the government announced plans to launch a share market by October 2015, experts say.
Companies who originally expressed interest in forming a stock exchange are now hesitant, citing further capital needs should the government follow through with its plan.
“People should not expect much in the initial stages of a stock market. There will be some trades at start-up, but there won’t be many companies to trade. It’ll be just a market,” said Dr Aung Thura, CEO of Thura Swiss, a local market research and business advisory company.
Japan planned to help Myanmar establish its stock exchange but progress has proven slow with delays arising due to the difficulty in organising companies and finding suitable premises.
Training of government officers, by Daiwa, a Japanese company, has been underway since 2011 with Japan also sending members of its Financial Services Agency to oversee development.
“We have given training and also sent people overseas. The Minister of Finance expects the stock exchange to be in place by 2015, but for now we are still seeking companies to list,” a source close to the Myanmar Stock Exchange program said.
Daiwa Securities Group Inc signed a memorandum of understanding with the Myanmar government in 1994. In 1996, Daiwa Institute of Research Group and the Myanmar Economic Bank formed the Myanmar Securities Exchange Co Ltd with the objective of launching a Myanmar stock exchange.