MA4N0206
BATJARGAL Jargalsaikhan
L/O/G/O
Introduction to
Mongolian Stock Market, MSE
www.trungtamtinhoc.edu.vn
Contents
Brief introduction to the MSE
Timeline of MSE
Stock Market
Bond Market
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Historical background of
Mongolian Stock Exchange
Brief Introduction to the MSE


The Mongolian Stock Exchange (MSE)
(Mongolian: Монголын Хөрөнгийн Бирж) located in Ulaanbaatar, is
Mongolia's sole stock exchange.
The Mongolian Stock Exchange is located in the former Children's Cinema building
near Chinggis Square, next to the headquarters of Mongolia Telecom and across from
the Mongolian parliament's buildings.
It was refurbished at a cost of US$ 4.5 million prior to the official start of trading;
seats and screens were removed, a trading floor was created and equipped with
computers, and automatic sinks were installed in the bathrooms.

The building itself is a pink-and-white neo-classical-style structure. One corner of the
building has been partitioned off to serve as an internet cafe. Due to the color of its
building, the Financial Times correspondent, Leslie Hook, defined it the pink house
of equities. Since then the building has been painted gray.
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
Historical Background of
Mongolian Stock Exchange (MSE)
 96.1 million shares worth 8.2 billion MNT (7.0 million USD)
of 475 state owned entities were successfully traded
through MSE during 1992-1995.
 The secondary market on MSE has been held since 1995.
http://mse.mn/content/show/id/7
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 During the transitional period from a centrally planned
economy to a market economy in Mongolia, the
Government of Mongolia established the root of Mongolian
Stock Exchange (MSE) on January 18, 1991 with the
intention of implementing its Privatization Policy and
developing investment and securities market.
Historical Background of
Mongolian Stock Exchange (MSE) (Cont.)
 The first Securities Act was enacted in 1994, followed by the
establishment of Securities Committee.
 The Securities Act’s 2002 renewal reformed the status of MSE into
a state owned company and allowed it to perform securities
trading and other business activities that comply with Mongolian
laws and regulations.
 The main indicator and benchmark of Mongolian Stock Market
was initially comprised of 75 companies, TOP_75. In 2003, a
number of companies in the basket were reduced to 20
companies, TOP-20.
http://mse.mn/content/show/id/7
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 29 state owned brokerage firms were privatized, the status of
Mongolian Stock Exchange was changed into non-profit, securities
trading and related service providing entity according to the
enactment 170 by Mongolian Government in 1995.
Timeline of MSE
1996
The first trading
day for
government
bonds.
01 January
1998
The MSE joined
as the
Federation of
Euro-Asian
Stock
Exchanges as a
full member.
https://en.wikipedia.org/wiki/Mongolian_Stock_Exchange
08 June
2001
The MSE started
to trade
corporate
bonds.
03 December
2002
Memorandum of
Understanding on
Mutual
Cooperation with
Taiwan Stock
Exchange was
signed.
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25 October
Timeline of MSE
2003
The MSE was
reorganized as
state owned
Shareholding
Company.
31 October
2005
"Training
center" of capital
market was
established at
MSE.
https://en.wikipedia.org/wiki/Mongolian_Stock_Exchange
01 January
2006
Finance
Regulatory
Commission of
Mongolia was
established.
15 June
2006
Memorandum of
Understanding
with Korea
Exchange was
signed.
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26 March
Timeline of MSE
2006
Memorandum of
Understanding
with Istanbul
Stock Exchange
was signed.
05 March
2008
The MSE
established
"Information
transmission"
agreement with
Bloomberg.
https://en.wikipedia.org/wiki/Mongolian_Stock_Exchange
10 April
2008
The Mongolian
Stock Exchange
became a
member of the
Asia Pacific
Stock
Exchanges
Association.
10 April
2008
Memorandum of
Understanding
with Singapore
Stock Exchange
was signed.
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19 July
Timeline of MSE
2008
Memorandum of
Understanding
with Tokyo Stock
Exchange was
signed.
17 March
31 August
07 April
2009
2010
2011
Memorandum of
Understanding
with Moscow
Interbank
Currency
Exchange was
signed.
https://en.wikipedia.org/wiki/Mongolian_Stock_Exchange
Market value of
MSE, exceeded
MNT 1 trillion.
Mongolian Stock
Exchange and State
Property Committee
of Mongolia signed
the "Strategic
Partnership
Agreement" with
London Stock
Exchange Group.
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15 May
Related Authorities
State Property Committee
Parliament of Mongolia
Financial Regulatory Commission
MSE
Mongolbank
Address: Mongolian stock exchange
Great Chinggis Khaan’s Square-3,
Ulaanbaatar 15160, Mongolia
Phone: (+976)-11-313747-(109)
Asia and Oceania Stock
Exchange Federation
Fax: (+976)-11-325170
Website: www.mse.mn
E-mail: info@mse.mn
Office hours: Monday – Friday 08.00 am to 05.00 pm.
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Ministry of Finance
MSE: People and relationship building
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Naidansurengiin Zoljargal,
one of the founders of the
Mongolian Stock Exchange,
was educated in Hungary
and later studied finance at
the Harvard University in the
United States, and founded
the Mongolian Stock
Exchange when he was
27 years old.
His older brother,
Naidansurengiin
Jargalsaikhan, was formerly
head of the Bank of
Mongolia, but was ousted
from his job after the loss of
US$100 million of foreign
reserves, which had been
invested in futures and
foreign currency
His Daughter, Kherlen
Zoljargal, graduated from
Cornell University in May
2014 and has since started
working for Bloomberg in
June.
https://en.wikipedia.org/wiki/Mongolian_Stock_Exchange
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MSE success highlights
121%
57.8%
increase
increase
2010
2011
Ranked world’s
best performing
stock market
Ranked the second
best performing
stock exchange in
the world
https://en.wikipedia.org/wiki/Mongolian_Stock_Exchange
2011
Venezuela Caracas
Stock Exchange
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increase
80.8%
Functions of stock exchanges
 The first stock exchange was in the Netherlands when the Dutch East India
Company issued the first shares on the Amsterdam Stock Exchange.
 Stock exchanges has following major functions in any economy:
Raising capital for businesses
Mobilizing savings for investment
Facilitating company growth
Profit sharing
Corporate governance
Creating investment opportunities for small investors
Government capital-raising for development projects
 Some of the world largest stock exchanges in terms of volume are:
• NYSE, NASDAQ, Tokyo stock exchange, London stock exchange, National stock
exchange etc.
www.capmaa.org
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•
•
•
•
•
•
•
Location of Stock Exchanges
across the World
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www.capmaa.org
Mongolian companies in
international stock exchanges
Centerra Gold
CG:CN,NL-43-101
Vancouver
East Asian
Mineral
Corporation
Etas:Cn
Toronto
New York
Ivenhoe Mines
Ivn:us
London
Petro Matad
Mato:Ln,
Hong Kong
Australia
Hunnu Coal
Hun:AU,JORC
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North Asian
Resources
61:HK,JORC
Stock market
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During the reporting period, Top-20 Index’s highest
point reached 17160.49 units, lowest point was
14475.20 units and the average point was 15744.98
units.
End of the reporting period, Top-20 index stood at
14854.24 units indicating a decrease of 8.88% or
1447.57 units compared to the same period of previous
year.
www.mse.mn
Stock market performance between 2004 - 2014
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www.mse.mn
Trading performance of 2013 & 2014
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Total trading value has decreased by MNT73.4
billion or 75.20% compared to the same period of last
year.
www.mse.mn
2013 Stock trading performance
MOST ACTIVELY TRADED 30 SECURITIES
As of 31 December 2014,
total of 51.7 million shares
of 137 Joint Stock
Companies worth
MNT24.2 billion were
traded through 255 trading
sessions.
Amount of most actively traded 30 companies accounted 98.85% of total trading by volume and 94.39%
of total trading by value respectively.
During the reporting period, shares of 136 joint stock companies traded and 80 companies had share
price increase, 40 companies had share price decrease and rest of 14 companies had unchanged share
price compared to the same period of last year.
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During the reporting
period, the average daily
turnover was MNT86.9
million, 162.9 thousand
shares in term of share
volume. /The average
daily turnover included
value and volume of block
trading/
2013 Stock trading performance (Cont.)
TOP 20 GAINERS
TOP 20 LOSERS
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www.mse.mn
Bond Market
GOVERNMENT
BOND TRADED
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In 2013,
government
bond worth 1,01
billion MNT with
1096 days to
maturity, a
coupon rate of
7.8%, a face
value of 100 000
MNT have been
traded in the
secondary
market through
one trading
transaction.
Bond Market
GOVERNMENT SECURITIES YIELD CURVE
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Term
Mongolia Australia
1 month 3 months
14.558 6 months
15.114 1 year
16.745 3 years
16.875 5 years
16.75
2.03
10 years
17.5
2.96
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Korea USA Germany
0 1.5
0.1 1.515 0.22 1.571 0.35 1.762
0 1.99
1.52
-0.01
2.357 2.16
0.6
Japan
-0.006
-0.075
0.01
0.015
0.095
0.41
Bond Market
CORPORATE BONDS TRADED 2003 - 2013
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www.mse.mn
Bond Market
CORPORATE BONDS TRADED 2003 - 2013
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www.mse.mn
L/O/G/O
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