#Cambodia - Sihanoukville port rides wave of increasing container traffic.

Sihanoukville Autonomous Port (PAS), which operates the Kingdom’s only deepsea port, reported a modest increase in container traffic during the first six months of the year, compared to a year earlier, a trend its director said should result in higher profits for the listed company.

Data obtained from PAS yesterday showed a total of 211,719 20-foot equivalent units, or TEU, passed through the seaport between January and June of this year, an 8 percent increase compared to the same period in 2016. The higher throughput follows a slowdown in growth last year in which container traffic increased by just 2 percent.

Lou Kim Chhun, director general of PAS, said yesterday that the rebound in container traffic growth was the result of Cambodia’s vibrant import and export market, which should be expected for a country that is enjoying 7 percent GDP growth. PAS also recently added new rubber-tyred gantry cranes, which expanded its handling capacity and helped to build more confidence in the port’s operations, he noted.

“Based on the good performance in the first half, we expect double-digit growth of container traffic this year,” he said. “The increased growth of cargo traffic will enlarge our profit margin, which in turn will enable us to distribute high dividends to our stock investors.”

The increase in port container traffic was distributed evenly between imports and exports. 

According to PAS data, imports increased by 8.4 percent year-on-year to 107,181 TEU during the first half, while exports increased by 7.7 percent year-on-year to 104,538.

PAS debuted on Cambodia’s stock exchange in June after an initial public offering that raised $27 million. It was the fifth company to list on the Cambodian Securities Exchange. 

Source - PhnomPenhPost

Myanmar (Burma) - Mechanism for foreigners to trade in YSX under way

A mechanism for foreign investors and organisations to take part in the Yangon Stock Exchange is under development, according to Myanmar Securities Exchange Centre.

Daily stock trading in Myanmar has declined significantly and the market is sluggish. In order to revive the trading activities, a system to include non-Myanmar investors from various sectors must be developed, MSEC executive director Takashi Takahashi said.

The MSEC and the Yangon Stock Exchange (YSX) are in collaboration, he said during a stock exchange education talk held at Parkroyal Hotel on July 19.

“To make the Myanmar stock market active, what is necessary now is to develop a system to include investors from various sectors.

“If that system is successful, there will be more investors in the market. Right now, there is also a need to attract individual investors,” he said.

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The average volume of daily stock trading in June 2016 was K313 million but it declined to merely K70 million in June 2017, resulting in a significant decrease.

Myanmar stock index, with its base point at 1000 on March 25, 2016, dropped to 552.62 on July 11, 2017.

“We can assume that the change is due to traders shunning the market as the stock prices are stagnant.

“To revive the market, it is necessary to have more listed companies and more traders,” Mr Takahashi added.

 

Under the existing Myanmar Companies Act, a company where a foreigner has any share is defined as a foreign company. Companies listed on the YSX have many restrictions in selling their shares to foreigners.

The government is currently working on a new Companies Act and the draft piece of legislation has been submitted to the Pyidaungsu Hluttaw. In the new law, a domestic company is allowed to have up to 30pc foreign investment.

“Without the participation of wealthy foreigners, domestic stock market will remain slack. An individual local investor cannot invest much.

“For foreigners to take part, the Companies Act must be amended,” Myanmar Agriculture Public (MAPCO) executive director U Ye Min Aung told The Myanmar Times.

There are only about 30,000 securities accounts opened for stock trading in the YSX. Compared to the national population, it is a very small fraction, with only 0.05pc per head. 

Those are accounts owned by individuals, and not organisation-based accounts.

The YSX, which was established in December 2015, only has four listed companies on board, while Laos and Cambodia have five listed ones each. In contrast, Vietnam boasts 695 companies and Thailand 731 companies.

“In other countries, foreign investors are allowed to take part. Moreover, banks and insurance firms are seen to be actively trading in the stock market,” Mr Takahashi said.

Source - MM TIMES