The Myanmar Stock Price Index (MYANPIX) finally broke a month-long downward spiral last week, closing November 24 at a 35-day high of 486.65. This was due to a surge in trading of shares in First Myanmar Investments Limited (FMIL), one of the four companies listed on the Yangon Stock Exchange.
Trade volumes first spiked on November 22, after SHC Capital Asia, an investment holding company listed in Singapore, said it is planning to acquire MM Myanmar, a tourism company, from FMIL and its other shareholders for a total of S$69.7 million.
MM Myanmar comprises the Experiences business, which includes Balloons Over Bagan and Bagan Land, while the Services businessincludes the Asia Holidays travel agency. The Hotels business comprises Hpa-An Lodge and Pun Hlaing Lodge.
There are some caveats to the deal though. If the authorities do not provide the necessary approvals for the Bagan businesses, for example, FMIL must buy them back from SHC Asia.
FMIL rose xx percent during the week to close at K13,000 a share. At those levels, the company is valued at K335.7 billion.
Singapore, Vietnam high
The Singapore stock market closed the week at a 2.5-year high after data released showed industrial output in October climbed for a fifteenth straight month. Industrial production was up 14.6pc for the month compared to 14.4pc in September, buoyed by higher output in the electronics sector.
Singapore’s Straits TimesIndex gained 1.8pc during the week, led by Thai Beverage, which last month bought a 75pc stake in Myanmar Distillery Company Group (MDC) for S$1 billion. MDC brews Myanmar’s most popular Grand Royal whisky. The stock rose 3.2pc last week, followed by DBS Group Holdings, which rose 1.5pc.
In Vietnam, stocks rose 5pc during the week to close at a 2-year high, led by beer companies Saigon Beer Alcohol Beverage Corp and Hanoi Beer Alcohol and Beverage Joint Stock company, which gained 3.6pc and 3.2pc for the period, respectively.
As a whole though, ASEAN bourses were softer after China introduced new liquidity rules in the country November 23. The rules restrict banks’ ability to buy bonds with borrowed money and to lend to corporate clients through off-balance-sheet channels. They are designed to curb shadow banking and reduce domestic debt.
Chinese shares tumbled 3pc after the rules were announced. Earlier, the yield for China 10-year sovereign bonds exceeded 4pc, the highest level in 3 years.
Investors are concerned that Beijing’s rising efforts to rein in runaway debt growth will slow its economy. China is the world’s largest consumer of commodities like oil and coal and is also one of the largest importers of crops produced in Southeast Asia.
Source: Myanmar Times