In the second quarter of 2023, the Mongolian stock market soared, growing 2.3 times compared to the previous year, reaching a total value of MNT 10.9 trillion. Trading was bustling, with securities worth MNT 533.9 billion changing hands – a surge of 1.9 times from the prior year and an incredible 5.9 times from the same period in 2019.
Breaking down the action, a significant 80.5 percent of trading activity revolved around stocks, while investment funds comprised 4.6 percent, corporate bonds held 7.0 percent, and asset-backed securities constituted 7.9 percent.
The MSE operates the main market indicator, the MSE Top 20 Index, which reflects the performance of the top 20 companies by market capitalization. During the reported period, the MSE Top 20 Index reached 36,899.16.
The MSE lists a variety of companies from different sectors, including mining, finance, manufacturing, and services. The market’s composition reflects Mongolia’s economic landscape and growth sectors. Additionally, this exchange has taken steps to attract foreign investment by improving transparency, modernizing trading systems, and providing more information to international investors. These efforts have contributed to increased foreign participation in the market.
While the MSE has shown growth potential, it has also faced challenges such as liquidity issues, limited diversification, and fluctuations in commodity prices that can impact the performance of listed mining companies. The MSE’s development efforts have aimed to address these challenges and create a more resilient and diverse market.