Ulaanbaatar
Mongolia’s stock market to further expand in 2022
Economy
Ulaanbaatar /MONTSAME/. The Mongolian Stock Exchange (MSE) was recently highlighted as the top performing stock market of 2021 by Bloomberg. As of December 5, the MSE Top 20 index grew by 104 percent which served as the core factor for Mongolia’s stock exchange to be considered as one of the leading markets.
On top of this, the domestic stock market was added to the Watch List for ‘Frontier Market’ status by the FTSE Russell Group of the U.K in September 2021. This will promote the Mongolian market internationally, and provide significant support in bringing professional investors to the market, highlighted Executive DIrector of MSE Kh.Altai.
Furthermore, works are being carried out to increase active participation in the market and accelerate its development. In 2021, securities worth a total of MNT 1.4 trillion were traded which set a new record. Nine new securities such as ‘Erdenes Tavantolgoi’, ‘Invescore’, ‘LendMN’, ‘Central Express CVS’, and ‘Mandal Future Growth Fund’ were also registered.
As of currently, the total market capitalization of MSE stands at MNT 5.8 trillion - 12 percent of the country’s GDP. Experts believe that the stock market will further expand once large-scale companies running operations in Mongolia begin to be more involved in the market by introducing their own products.
Following the new amendments made to the Banking Law of Mongolia, Bogd Bank became the first bank to issue its stocks.
In the current time of technological advancements, the cryptocurrency market is rapidly developing - and as such, exchange of cryptocurrencies and coins are becoming active in Mongolia. In order to regulate the legal environment, a law on virtual asset service providers will soon be ready along with corresponding rules and regulations. Thus, in 2022, the Mongolian Stock Exchange plans to conduct tests on the exchange of virtual assets.
In the new year, the growth of the domestic stock market is expected to continue as banks are currently preparing their IPO alongside IPOs by state-owned companies in the framework of the ‘New Revival Policy’ of the Government, and dual listing of companies that are currently listed in stock markets abroad.
