In September, securities worth MNT 20 billion were traded on the domestic capital market, which is six times more than in August, due to a rise in the primary market trading worth MNT 16.5 billion.
Three companies attracted fund from the domestic capital market though IPO issuance. Lastly, in January of this year, securities worth about MNT 23 billion was traded. At that time, 88.3 percent of total trade was made by Government securities. In September, 98.5 percent of total trade was made solely by securities trading.
Main weight of the secondary market stock trading was generated by shares of ‘HBOil’ and ‘Makhimpex’ companies. For instance, 11% of shares of ‘Makhimpex’ JSC were traded for MNT 1 billion in one day. In September, shares of ‘And Energy’ JSC worth 5.3 million were traded on the Mongolian Securities Exchange. According to the ‘And Energy’ JSC, it is slightly behind the sales revenue plan. The company, which opened its branch in Ulaanbaatar city, said that it expects sales plan to be completed at the end of the year. Also, D.Munkhbayar, a founder and a member of the Board of Directors, expressed his support for shareholders to distribute dividends from net profit of 2018. However, the decision must be made at the Board meeting.
TOP 20 index was below 20,000 points since May. In September, the TOP 20 index rose 2.4 percent as unit share price of large-cap companies rallied. For instance, shares of ‘Talkh Chikher’ were up by 9 percent over a month, while ‘Gobi’ JSC’s shares rose 14 percent over the same period. Also, the MSE A index which includes Tier I companies, increased, while the MSE B index of Tier II fell. There were several changes to the listing status of the Mongolian Stock Exchange in September. Ard Insurance’ and ‘Mandal Insurance’ companies were newly listed in the Tier I, and ‘BDSec’ and ‘Bayangol Hotel’ JSC increased their classification to the Tier I. As a result there are 13 companies registered in Tier I on the Mongolia Stock Exchange.