Mongolia’s stock market reached 2.4 trillion MNT in market capitalization, its highest in the last 27 years, the Financial Regulatory Commission (FRC) reported.

The FRC reported on the overall performance of non-banking financial sectors and institutions in 2017. Seeing as banks dominate more than 95 percent of the financial market, growth in financial sectors outside of banking is considered vital in maintaining financial stability.

Securities, insurance, non-banking financial institutions, and the credit and savings union sectors all saw a growth of 25 percent in 2017.

In 2016, market capitalization for the stock market was at 1.4 trillion MNT. By the end of 2017, it reached 2.4 trillion MNT, marking a 65 percent increase in just a year. The 2.4 trillion MNT means that the stock market is equivalent to nine percent of the GDP.

Market capitalization of the stock market reached its previous highest point in 2011 with 2.1 trillion MNT thanks to a 17.3 percent growth in GDP.

The merger of APU JSC and Heineken, the six billion MNT bond issued by Suu JSC, the IPO of ITools being oversubscribed three times over, and the commencement of operations for Mongolia’s first private exchange all contributed to the significant increase since 2016.

“In 2017, market capitalization reached 2.4 trillion MNT, its highest level on record. This was thanks to mergers, bonds, IPOs, and the success of the public and private exchanges. In 2018, the first non-banking financial institution launched its IPO, marking the first time in Mongolia. Outside of more traditional financial sectors, we are hopeful that moving forward, companies employing fintech or financial technology will have more successful results,” said B.Lkhavgasuren, head of the Department of Securities at the FRC.


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