MCB maintains strong gains on YSX
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.
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.