Myanmar

Myanmar: Nomura says frontier markets are potential beneficiaries of a liquidity-boosted global recovery, noting previous QE exercises provided notable support. Among frontier markets, it also tips Myanmar as among structural-rebalancing beneficiaries, positioned to benefit from China's ongoing shift up the value-added curve and away from lower-value-added labor-intensive manufacturing activity. These 'structural beneficiaries' offer the most attractive Frontier thematic from the standpoint of bankable longer-term investable opportunity. Adds, Myanmar also offers opportunities based on its political reform. While Myanmar's stock market remains primitive and practically off-limits to foreign investors, Nomura notes exposure can be obtained through Singapore-listed Yoma Strategic and Interra Resources (which respectively derive 98% and 57% of total revenues from Myanmar). Yoma is up 6.5% at $0.575 with volume of 5% of shares changing hands on the SGX; Interra is up 1.2% at $0.435. We note that while Yoma has formal research coverage by two local houses thus far, other foreign houses such as CLSA, CS and Nomura have been increasing their updates on Myanmar. It may be a matter of time , as institutional investors become more familiar with the theme , before the foreign houses initiate coverage on the Myanmar companies.