Myanmar stock exchange prepared by Tokyo

Published:  13 Apr at 2 PM

As reported by the BBC, Myanmar is to have a new stock exchange, as Daiwa Securities and the Tokyo Stock Exchange received preliminary authorization to help establish it.

A Daiwa spokesperson says it will work with Myanmar’s central bank to set up the exchange before 2015. Myanmar, formerly known as Burma, is seeking to lure more overseas investors after several decades of firm military rule.

The resource-rich nation held historic by-elections this month which many hope will bring about a more open economy. Canada, the US and the EU and are among economies looking to relax the sanctions on Myanmar following its political reforms.

The Tokyo Stock Exchange announced in a statement that, by establishing the Burmese stock exchange, the TSE would be able to help to develop capital markets in the nation.

Hugh Young, who is managing director with Aberdeen Asset Management Asia, said there is a lot of interest in Myanmar, and foreign investors are jumping on the bandwagon.

However, while people are enthusiastic and see the potential in Myanmar, there is a risk of getting carried away at this early stage, he said. Money can be made, and lots of money can also be lost, he added.

This will not be Myanmar’s first stock exchange. The Myanmar Securities Exchange in Yangon was established back in 1996, but has had very limited success as only two stock options are listed on it.