The Brexit referendum results announced on June 24 resulted in a record low for the Pound Sterling in the market and global stock markets lost US$ 2 trillion in a single day. Consequently, on June 27 when the Yangon Stock Exchange reopened trading after weekend holidays, the share price of FMI Co. Ltd. fell to a record low of 23,500 kyats.
FMI is the sister company of the Singapore Stock Exchange listed Yoma Strategic Holdings owned by Real Estate tycoon Serge Pun aka Thane Wai and these companies are reportedly working together in construction and real estate development.
Mizzima asked FMI chief finance officer (CFO), Tun Tun, if the FMI share price fall was because of the fallout of from the Brexit referendum. Mr Tun Tun replied, “I see that the share prices are plummeting in the stock market. I think this is connected with the UK’s exit from the EU and fallout of this referendum result.”
Yangon Stock Exchange senior executive officer Thet Tun Oo said, “Despite plunging share prices, total trade volume in Yangon Stock Exchange has surged today.”
FMI was the first listed company on the Yangon Stock Exchange with an opening share price of 26,000 kyats. On the same day, the share price rose to 31,000 kyats per share. Each share rose by 5,000 kyats on that day. After that FMI share prices fluctuated between 25,000 and 31,000 kyats each trading day in May and June of 2016. (Mizzima omitted the share prices in April as there were long holidays that month)
Mr Tun Tun added, “Investment cannot give results overnight. I’d like to say investment should be made on a long-term basis,” noting that the stock market is not a short term game.
CEO of Thura Swiss Company, which provides services to domestic businesses, said that the Brexit referendum would have only a little impact on the Yangon Stock Exchange, saying, “World market volatility is not the primary cause for the Myanmar market. It can only be a secondary cause,” he said.
FMI is mainly involved in financial services (Yoma Bank), real estate development and healthcare services and has a total turnover in the 2015-16 financial year of over 110 billion kyats before tax. The shares of FMI and Myanmar Thilawa Special Economic Zone Public Company Ltd. (MTSH) are currently being traded daily on the Yangon Stock Exchange.