l/o/g/o introduction to mongolian stock market, mse ma4n0206 batjargal jargalsaikhan
TRANSCRIPT
L/O/G/O
www.trungtamtinhoc.edu.vn
Introduction to Mongolian Stock Market, MSE
MA4N0206
BATJARGAL Jargalsaikhan
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Contents
Bond Market
Stock Market
Timeline of MSE
Historical background of Mongolian Stock Exchange
Brief introduction to the MSE
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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)
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.
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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Historical Background of Mongolian Stock Exchange (MSE) (Cont.) The first Securities Act was enacted in 1994, followed by the
establishment of Securities Committee.
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.
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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Timeline of MSE
01 January25 October25 October 08 June 03 December
1996 1998 2001 2002
The first trading day for government bonds.
The MSE joined as the Federation of Euro-Asian Stock Exchanges as a full member.
The MSE started to trade corporate bonds.
Memorandum of Understanding on Mutual Cooperation with Taiwan Stock Exchange was signed.
https://en.wikipedia.org/wiki/Mongolian_Stock_Exchange
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Timeline of MSE
31 October26 March26 March 01 January 15 June
2003 2005 2006 2006
The MSE was reorganized as state owned Shareholding Company.
"Training center" of capital market was established at MSE.
Finance Regulatory Commission of Mongolia was established.
Memorandum of Understanding with Korea Exchange was signed.
https://en.wikipedia.org/wiki/Mongolian_Stock_Exchange
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Timeline of MSE
05 March19 July19 July 10 April 10 April
2006 2008 2008 2008
Memorandum of Understanding with Istanbul Stock Exchange was signed.
The MSE established "Information transmission" agreement with Bloomberg.
The Mongolian Stock Exchange became a member of the Asia Pacific Stock Exchanges Association.
Memorandum of Understanding with Singapore Stock Exchange was signed.
https://en.wikipedia.org/wiki/Mongolian_Stock_Exchange
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Timeline of MSE
17 March15 May15 May 31 August 07 April
2008 2009 2010 2011
Memorandum of Understanding with Tokyo Stock Exchange was signed.
Memorandum of Understanding with Moscow Interbank Currency Exchange was signed.
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.
https://en.wikipedia.org/wiki/Mongolian_Stock_Exchange
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Related Authorities
MSEMinistry of FinanceMinistry of Finance
Parliament of MongoliaParliament of Mongolia
MongolbankMongolbank
Financial Regulatory CommissionFinancial Regulatory Commission
State Property CommitteeState Property Committee
Asia and Oceania Stock Exchange Federation
Asia and Oceania Stock Exchange Federation
Fax: (+976)-11-325170Website: www.mse.mnE-mail: [email protected] hours: Monday – Friday 08.00 am to 05.00 pm.
Address: Mongolian stock exchangeGreat Chinggis Khaan’s Square-3,Ulaanbaatar 15160, MongoliaPhone: (+976)-11-313747-(109)
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MSE: People and relationship building
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.
[Image Info] www.wizdata,co,kr Note to customers : This image has been licensed to be used within this PowerPoint template only. You may not extract the image for any other use.
https://en.wikipedia.org/wiki/Mongolian_Stock_Exchange
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MSE success highlights
121%increase 57.8%
increase
80.8%increase
Venezuela Caracas Stock Exchange
Ranked world’s best performing
stock market
Ranked world’s best performing
stock market
Ranked the second best performing stock exchange in the world
Ranked the second best performing stock exchange in the world
20102010
2011 20112011
https://en.wikipedia.org/wiki/Mongolian_Stock_Exchange
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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
www.capmaa.org
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Mongolian companies in international stock exchanges
Vancouver LondonToronto
Hong Kong
New York
Australia
East Asian Mineral CorporationEtas:Cn
Petro MatadMato:Ln,
North Asian Resources61:HK,JORC
Ivenhoe MinesIvn:us
Centerra GoldCG:CN,NL-43-101
Hunnu CoalHun:AU,JORC
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Stock market
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
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Stock market performance between 2004 - 2014
www.mse.mn
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Trading performance of 2013 & 2014
Total trading value has decreased by MNT73.4 billion or 75.20% compared to the same period of last year.
www.mse.mn
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2013 Stock trading performance
www.mse.mn
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.
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/
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.
MOST ACTIVELY TRADED 30 SECURITIES
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2013 Stock trading performance (Cont.)
www.mse.mn
TOP 20 GAINERS TOP 20 LOSERS
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Bond Market
www.mse.mn
GOVERNMENT BOND TRADED
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.
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Bond Market
www.mse.mn
GOVERNMENT SECURITIES YIELD CURVE
Term Mongolia Australia Korea USA Germany Japan1 month - - - 0 - -3 months 14.558 - 1.5 0.1 - -0.0066 months 15.114 - 1.515 0.22 - -0.0751 year 16.745 - 1.571 0.35 - 0.013 years 16.875 - 1.762 0 - 0.0155 years 16.75 2.03 1.99 1.52 -0.01 0.09510 years 17.5 2.96 2.357 2.16 0.6 0.41
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Bond Market
www.mse.mn
CORPORATE BONDS TRADED 2003 - 2013
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Bond Market
www.mse.mn
CORPORATE BONDS TRADED 2003 - 2013
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