Yoma Strategic Holdings surged Wednesday in Singapore’s stock market on hopes that the National League for Democracy’s likely ascent to power in Myanmar will spell new opportunities for the real estate developer in that market.
The company closed at 0.51 Singapore dollar (35 cents), up 3.03% from Monday. The stock rose as far as S$0.52 during the day, an intraday high not seen since May 22.
Yoma Strategic develops residential and commercial buildings, as well as resorts in Myanmar. The developer also counts on that government’s spending in agriculture, tourism and infrastructure as a main source of earnings. Yoma Strategic sells Japanese cars in Myanmar as well, including Mitsubishi models.
Investors anticipate growing property demand in Myanmar if Aung San Suu Kyi’s party accelerates economic development and foreign companies enter the market.
The Singapore-based company’s sales grew 10% year over year to S$110 million ($77.4 million) in the fiscal year ended March, with net profit jumping 72% to S$28.1 million. Both figures are roughly tenfold that of fiscal 2010.
Source: Nikkei Asia Review