MONGOLIAN CAPITAL MARKET

OVERVIEW
ANGAR.D CEO of Mongolian Stock exchange

MONGOLIAN STOCK EXCHANGE l www.mse.mn

MONGOLIAN STOCK EXCHANGE l www.mse.mn

Mongolian Stock Exchange since the strategic partnership with the

London Stock Exchange Group: Key achievements
The Master Services
Agreement was signed
between the State
Property
Committee
(SPC), the Mongolian
Stock Exchange (MSE)
and the London Stock
Exchange Group for the
purpose of implementing
the MSE Development
Plan;

April, 7 2011

Launched the integrated

Millennium
IT
technology, consisting
of
Millennium
Exchange, Millennium
CSD,
Millennium
Surveillance, Millennium
Trader
programs,
produced by LSEG
subsidiary Millennium IT
company.

July, 2 2012

Revised
securities market
law of Mongolia
has
been
approved
by
Parliament.

2013.5.24

Operational rules
and regulations
have been
amended according
to the Revised
securities market
law of Mongolia

2014.8

Strategic
partnership
agreement
has
been
extended
for another 3
years.

2014.9.9

The Principle Objective of the Plan is to transform the MSE to a world class Exchange Operator and Develop the
Mongolian Capital Market as a whole;

MONGOLIAN STOCK EXCHANGE l www.mse.mn

MONGOLIAN STOCK EXCHANGE l www.mse.mn

Mongolian stock exchange indicators

Market
Market
capitalization
capitalization
Over the past 18 years, the value
for this indicator has fluctuated
between $1,578,573,000 in 2011
and $24,800,000 in 2004.

Market capitalization of listed

companies (% of GDP) in Mongolia
was 5.07 as of 2015.05.29. Its
highest value over the past 18 years
was 18.02 in 2011, while its lowest
value was 1.24 in 2004.
MSE
MSE ALL
ALL Index
Index Performance
Performance
On June 10, 2015,
MSE ALL index
closed at 979.11
points. Its high point
was 1000.0, average:
961.04 and low:
921.67 in 2015

2015.02.09, Starting point: 1,000.0

MONGOLIAN STOCK EXCHANGE l www.mse.mn

MONGOLIAN STOCK EXCHANGE l www.mse.mn

2015.06.10, Close point: 979.11

Mongolian stock exchange indicators

Listed
Listed Joint
Joint
Stock
Stock
Companies
Companies
/237
/237 JSC/
JSC/

237
JSC

Securities companies with distant trading

platform -31
According to the renewed special license
regulation of FRC, equity fund of
Securities Companies should be not less
than MNT500 million from July
2014./Today equity fund is MNT50
million/

Member
Member
Securities
Securities
Companie
Companie
ss
/62
/62 SC/
SC/

There will be about 30 security

companies expected to remain after
joining and liquidating process .

MONGOLIAN STOCK EXCHANGE l www.mse.mn

MONGOLIAN STOCK EXCHANGE l www.mse.mn

Delisting policy
/2013 68JSC,
2014- 25JSC,
since 2015 1JSC was
delisted/

TOTAL LISTED COMPANY

I Classification
II Classification
III Classification
Delisted
100% State owned
Partially State owned
Privet

-237 JSC /100%/

- 0 JSC
- 89 JSC
- 148 JSC
- 156 JSC
- 21 JSC
- 15 JSC
- 201 JSC

MEMBER COMPANIES
Broker, Underwriting
Broker, Dealer
Broker, Investor Advisory
Broker, Dealer, Underwriting, Investor Advisory -

62
23
60
15
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GOVERNMENT BONDS MARKET

Primary market Government bonds trading has been organizing since November 2014.
Since then, total of 2,809,453 Government bonds traded through 34 trading and
transaction of MNT280.9 billion has been made.
This year, the government bonds worth MNT243.3 billion traded in primary market.
12 weeks Government bonds 91.0%
28 weeks Government bonds 7.0%
52 weeks Government bonds 2.0%- .

MONGOLIAN STOCK EXCHANGE l www.mse.mn

MONGOLIAN STOCK EXCHANGE l www.mse.mn

Mongolian Stock Exchange and FTSE Group: A New Frontier Market

The Mongolian capital market has been placed on FTSEs Watch List for possible
promotion to Frontier market status.

FTSE assumes a major position in global financial market and enjoys an

unparalleled reputation for provision of indices and market data that many
international investors an investment funds base on to make informed investment
decisions.
The implementation of a world standard
trading and settlement system and market
infrastructure and increased transparency in
the market had a major influence in placing
Mongolia on a Watch list for possible
promotion to Frontier market status.

MONGOLIAN STOCK EXCHANGE l www.mse.mn

MONGOLIAN STOCK EXCHANGE l www.mse.mn

Mongolian Capital Market the foreign investment friendly environment

MONGOLIAN STOCK EXCHANGE l www.mse.mn

MONGOLIAN STOCK EXCHANGE l www.mse.mn

PROFILE OF TARGET LISTED COMPANIES

Increasing the quality of the companies on the market is key to attracting new investors.
There are seven categories of companies that we should target.

Approx. market capitalisation

$m

State Privatisations
Significant state assets listed on MSE and LSEG for
capital raising
Repatriations
Mongolia companies listed on another exchange who
decide to dual list on MSE
(e.g South Gobi / Petro Matad)

New Domestics
Existing Mongolian
companies which decide
to list on the market

Existing
Current listed companies who meet (or
close to) the new listing standards

Foreign Listings
Siberian mining companies too small to list
on MICEX (or London) but wanting to raise
further capital. Success could establish
MSE as a regional exchange
New Licences
Small parcels of mining assets sold off by
Government
Delisted
Existing listed companies who failed to meet the new listing
standards

Approx. timing

MONGOLIAN STOCK EXCHANGE l www.mse.mn

MONGOLIAN STOCK EXCHANGE l www.mse.mn

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Future Prospect for Mongolian Stock Exchange

Current Market Cap doesnt reflect the full market potential
Billions
USD

Tavan
Tavan Tolgoi
Tolgoi
Oyu
Oyu Tolgoi
Tolgoi

Mongolias Top
20 listed
companies
account for 86%
of the current
market cap

MIAT
MIAT
Erdenet
Erdenet
$4+ bln

$15-20 bln

MMC
MMC
Oyu
Oyu Tolgoi
Tolgoi
South
South Gobi
Gobi
$15 bln
MCS
MCS Group
Group
Mobicom
Mobicom
Tavan Bogd
$5 bln

MONGOLIAN STOCK EXCHANGE l www.mse.mn

MONGOLIAN STOCK EXCHANGE l www.mse.mn

= $45 bln POTENTIAL

THANK YOU FOR YOUR ATTENTION

MONGOLIAN STCK EXCHANGE JSC
Chinggis Square 2, Ulaanbaatar, Mongolia
Fax: (976)-11-313 747
Website: www.mse.mn

MONGOLIAN STOCK EXCHANGE l www.mse.mn

MONGOLIAN STOCK EXCHANGE l www.mse.mn

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