ANNUAL REPORT JUNE 2010
FEDERATION OF EURO-ASIAN STOCK EXCHANGES
MONGOLIAN STOCK EXCHANGE
Government of Mongolia announced “2010
as a year of business environment
renovation”.
Rentson Sodkhuu
Chairman and CEO
Dear readers I would like to express my warm
greetings and best wishes to all of you on the
19th anniversary of the securities market and
Mongolian Stock Exchange in the Year.
The securities market and the securities industry,
which were new phenomenon and first
introduced together with democratic transition in
the country, thus has demonstrated successful
performance during the recent years and
continues its way ahead to meet the global
standards.
2008-2009 year was the year, where world
financial crisis was deepened and hit Mongolian
economy hard. Consequences of the crisis are
already being felt in the society. It expects to
continue in 2010. Even though we were greeting
the 2009 with difficulty of crises, we welcomed
2010 with positive increases in major indicators
of our capital market and some affirmative news
about overcoming crisis.
TOP-20 index that was reaching 11000 point
dramatically fell down till 4200 point on March 27
2008. At present it tends to increase and market
capitalization of MSE as of 03.15.2010 stood at
823.3 billion tugriks or 580 million US$.
In 2009, total of 89.9 mln stocks of 131 Joint
Stock Companies (JSC) were traded through
255 trading sessions on MSE with total
transactions worth of 23.2 bln MNT. In 2009, 11.2
percent of total trading value was an IPO trading
whereas 88.8 percent was a secondary market
trading. As of December 2009 the total market
capitalization of listed companies reached 620.7
bln MNT indicating an increase of 20.3% or
104.8 bln MNT compared to the same period of
previous year.
A year of 2010 has become a starting point for
implementing objectives to develop Mongolian
capital market as a classical way. By the end of
2009, during the “Capital market-key to
development” seminar, Prime Minister of
Mongolia criticized that foreign joint stock
companies are raising capitals by using
Mongolian deposits as collaterals and why we-
Mongolians cannot raise capital like them and
he obliged relevant organizations to pay attention
on this issues and to take an immediate action.
I think this action is a start of further development
of Mongolian capital market.
Mongolian capital market was first established,
since then contribution and efforts of the national
processionals, who dedicated themselves to the
development of the capital market were not
ignored and do not become useless. As a result
of our endless efforts, we have seen that
Government of Mongolia, which neglected the
development of capital market over 10 years,
had begun to know the importance of the capital
HISTORY AND DEVELOPMENT Historical timeline
Mongolian Stock Exchange was first
established by the Government Decree of 18th
January 1991. MSE is a state-owned JSC that
holds all rights to engage in any legal business
activities and is a sole provider of the securities
trade related services in Mongolia. 1991.01.18 MSE was established by the
Government Decree No.22.
1992.02.07 Primary market trading started.
1994.09.26 Securities law enacted.
1994.11.14 Mongolian Securities & Exchange
Commission was established
1995.08.28 Secondary market trading started.
1996.10.25 Government bond trading first
started.
1998.10.01 MSE joined Federation of Euro-
Asian Stock Exchanges (FEAS).
2001.06.08 Corporate bond trading started.
2002.12.03 MoU on cooperation was signed
with Taiwan Stock Exchange
2003.03.26 Mongolian Stock Exchange
became a Joint Stock Company
2004.10.29 First time, a special license of
Underwriting Service was issued to Securities
Company.
The main duties and functions of MSE are: to
list securities of joint stock companies, to
facilitate securities trading by ensuring technical
and software/hardware safety and reliability, to
ensure fair and transparent trading as well as
efficient dissemination of securities trading
information to the public and to protect general
rights and interests of investors.
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market and pay attention on it. This is our
achievement and I would like to congratulate and
express my sincere gratitude to all professionals
and participants of Mongolian capital market.
In order to develop Mongolian capital market
and bring it at the international standard, issue of
infrastructure development has become
substantial. We have to do it. Developing
infrastructure of Mongolian capital market means
a combination of the high quality technologies,
which connects all participants in capital market
such as issuers, buyers and professional
organizations, and trained staffs, who operate
those technologies.
Government of Mongolia announced “2010 as a
year of business environment renovation” and
this year will become the first year where national
largest shareholding companies will be
established, stock of those companies will be
traded at domestic and international capital
markets and financial new sources will be
created and utilized in Mongolia.
Let’s strive together for achieving this purpose.
We-Mongolian national professionals of capital
market will do their best to boost Mongolian
economy.
May Mongolia become a prosperous and
developed nation!
2005.01.02 Financial Regulatory Commission
of Mongolia was established.
2005.03.30 MSE information center was
established.
2005.09.12 MoU on cooperation was signed
with Gre Tai Securities Market.
2005.10.31 MSE Training Center was
established.
2006.01.18 Celebrated 15th anniversary of
MSE.
2006.06.15 MoU on cooperation was signed
with with Korea Exchange.
2006.07.19 MoU on cooperation was signed
with Istanbul Stock Exchange.
2008.03.26 Market capitalization has reached
its peak of 893.4 bln MNT.
2008.04.10 MSE joined the Asia Ocenian Stock
Exchanges Federation (AOSEF).
2008.04.10 The MoU was signed with
Singapore Exchange.
2008.05.15 MoU was signed with Tokyo Stock
Exchange.
2009.03.17 MoU was signed with Moscow
Interbank Currency Exchange.