In the first 10 months of 2018, stocks worth MNT 82.7 billion were traded on the Mongolian Stock Exchange. Of which secondary market trading accounted for 63.2 percent or MNT 52.3 billion.

21.6% of total secondary market trading and 26.6% of total block trading were generated by stock trading of ‘Gobi’, ‘Tavan Tolgoi’ and ‘APU’ joint stock companies. In addition, about 30 percent of the secondary market trading was generated by the companies that launched their IPO this year. In other words, about 60 percent of the secondary market trading of stocks was generated by three companies with largest market capitalization and newly listed companies.

In the first 10 months of the year, shares of ‘LendMN’ JSC and ‘APU’ JSC were traded for MNT 7.3 billion and MNT 6.3 billion on the secondary market respectively. Also, shares of two insurance companies have been traded for MNT 2.7 billion on the MSE over a month. The MSE reported that companies are successfully launching IPOs as well as the secondary market trading of their shares are being active. Since the beginning of the year, following increase in the number of newly listed companies, primary market trading of stocks has risen to MNT 30.4 billion, resulting in 36.8 percent of total trading value.

In 2017, ‘Itools’ JSC launched its IPO, which was oversubscribed by 3 times, and the share price increased by 2.5 times in 14 days. Also, IPO of ‘LendMN’ JSC was oversubscribed by 8 times. Lastly, IPO of two insurance companies was oversubscribed. In accordance with the latest IPOs, the knowledge of market participants is expanding, and the latest IPOs show that there is a demand for new products in the capital market, according to the directors of Custodian department of ‘Golomt bank’ and ‘Trade and Development bank’. Also, the CEO of the MSE reported that new companies are going to be listed in the near future. However, the Financial Regulatory Commission expressed its interest in protecting the rights of investors, rather than merely supply.

Looking at the stock exchange rate, the stocks of ‘LendMN’, ‘Mandal Insurance’ and ‘Ard Insurance’ companies have increased since their IPO. However, the shares of ‘Mongol Basalt’ and ‘Erdene Resources Development Corp’ companies have fallen since the listing date on the MSE.

Source: BloombergTv.mn