MCB main­tains strong gains on YSX

The Myanmar Times - - Front Page - Htin­lyn­naung@mm­times.com HTIN LYNN AUNG

Myan­mar Ci­ti­zens Bank has con­tin­ued its up­ward trend, avoid­ing the day­four slide suf­fered by the ex­change’s pre­vi­ously listed firms.

MYAN­MAR Ci­ti­zens Bank shares are up over 60 per­cent since the firm’s list­ing last week, ris­ing for four con­sec­u­tive trad­ing days to avoid a trend that has seen pre­vi­ous firms start a slow fall in value af­ter day three.

All three firms on the Yan­gon Stock Ex­change have listed on a Fri­day. The first two – First Myan­mar In­vest­ment and Myan­mar Thi­lawa SEZ Hold­ing – only made it to the fol­low­ing Tues­day be­fore their shares started a steady slide in value.

FMI en­joyed a 57pc jump in its share prices dur­ing the first three days, and MTSH shares rock­eted by 75pc. But on both oc­ca­sions Wed­nes­day her­alded the start of a slide.

MCB has avoided the day four drop. The bank listed its shares at K6800 on Au­gust 19, and by yes­ter­day’s close the shares were up an­other K1200 to close at K11,000.

Man­ag­ing di­rec­tor U Win Myint had said the share price “would only soar if the bank in­vests in, and ex­tends, its busi­ness op­er­a­tions”, but in­vestor ap­petite has prompted a rapid rise none­the­less.

The 60pc jump in value also comes de­spite MCB of­fi­cials stat­ing the bank is fo­cused more on ex­pand­ing its busi­ness than de­liv­er­ing div­i­dends.

MCB is plan­ning to open a host of new branches, ex­tend its bank­ing ser­vices and hire new staff.

In its dis­clo­sure doc­u­ments pub­lished ahead of list­ing, MCB said it had paid div­i­dends an­nu­ally dur­ing its 23 years of op­er­a­tion, but warned po­ten­tial in­vestors it may need to re­tain prof­its for rein­vest­ment and that there was no as­sur­ance div­i­dends would con­tinue.

While the com­pany was still ex­pand­ing it will not be able to pay div­i­dends, U Win Myint, MCB’s man­ag­ing di­rec­tor, said.

FMI an­nounced a cash div­i­dend of K135 per share in June, and MTSH re­ported that same month that it will pay a K2500 div­i­dend.

Photo: AFP

Peo­ple walk by the Yan­gon Stock Ex­change where the Myan­mar Ci­ti­zens Bank has seen a sharp rise in its share price since list­ing last week.

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