Over-the-counter (OTC) market will not be permitted if it hinders the growth of Yangon Stock Exchange, according to Makoto Akasaka, managing director of Daiwa Securities.
“Cambodia and Laos started with two or three listed companies but as they permitted dealings in OTC market, their stock exchanges have not seen significant growth. We won’t let Myanmar follow this road,” said Akasaka.
Myanmar has potential to become a big market but it is not yet able to forecast on the capital of the stock exchange, he added.
“Like in Vietnam, the Yangon Stock Exchange will kick off with a few companies and gradually expand in number of listed companies in two or three years.”
Vietnam’s stock exchange – established in 2000 – is now running successfully with 304 listed companies and the market capital is US$304 billion forming one-thirds of its GDP.
“We can’t allow the OTC market. If there’s OTC, the companies will not make deals in stock exchange. For its lower listing criteria, the companies prefer OTC market to the formal stock exchange,” said Tin Myint, executive director of Myanmar Securities Bond Firm.
Currently there are about three companies interested in Yangon Stock Exchange.