Yoma Strategic's Stocks Plunge Amid Executive Chairman's Legal Probe

Shares of Yoma Strategic Holdings plummeted by nearly 17% following news that Executive Chairman Serge Pun is cooperating with Myanmar authorities on banking matters. Despite no charges against him, the involvement has fueled speculative concerns. Myanmar's economy faces challenges due to the 2021 coup, escalating violence, and a depreciating currency.

Shares in Myanmar-focused conglomerate Yoma Strategic Holdings fell nearly 17% in Singapore on Wednesday after the company said Executive Chairman Serge Pun was cooperating with authorities in the capital Naypyitaw on bank business matters.

"There are no charges filed against him," the company said in a statement, adding that Pun had been meeting with authorities including the central bank. "As a responsible business organisation in Myanmar, the group engages with the relevant government ministries and regulators from time to time."

The Myanmar Now news outlet reported on Tuesday that Pun had been detained for more than a month over alleged violations of banking regulations, citing anonymous sources. A Myanmar junta spokesman did not respond to calls from Reuters seeking comment.

Pun is a property tycoon whose interests have expanded into financial services, food and auto sales. In 2006, the Myanmar citizen, who worked in Hong Kong before returning home, led Yoma's listing on the Singapore Stock Exchange, according to the group's website.

Yoma stock dropped as much as 21.5% in early trade and was last down 16.7% at S$0.1319 ($0.098), its lowest for two weeks. Myanmar's economy has been in turmoil following a 2021 coup where the country's powerful military ousted an elected civilian government, triggering widespread protests that have given way to a nationwide armed rebellion against the junta.

Escalating violence, labour shortages and a depreciating currency have made it harder to do business, according to the World Bank, which has also forecast that economic growth is likely to remain at a measly 1% in the current fiscal year. In a bid to stabilise its rapidly depreciating currency and rampant inflation, junta authorities have made dozens of arrests in recent weeks, including a Japanese national working for a supermarket chain in Myanmar.

($1 = 1.3496 Singapore dollars)

(With inputs from agencies.)