1 US-MONGOLIA 'THIRD NEIGHBOR TRADE ACT' ON THE WAY WWW.THEDIPLOMAT.COM PUBLISHED:2018/11/17      2 CHINA'S FIGHT AGAINST SMOG MAKES PALLADIUM 2018'S BEST METAL WWW.MINING.COM PUBLISHED:2018/11/17      3 MILLENNIUM CHALLENGE CORPORATION PRESENTS GMS LICENSES WWW.MONTSAME.MN PUBLISHED:2018/11/17      4 MONGOLIA CALLS FOR GLOBAL ATTENTION ON CLIMATE CHANGE WWW.NEWS.MN PUBLISHED:2018/11/17      5 ADB OPENS A NEW WASTEWATER TREATMENT PLANT IN ARVAIKHEER, MONGOLIA WWW.AGENPARL.EU PUBLISHED:2018/11/17      6 CHINA TO BOOST COOPERATION WITH INDIA, MONGOLIA: DEFENSE MINISTER WWW.GLOBALTIMES.CN PUBLISHED:2018/11/17      7 DEATH ON MONGOLIA’S ‘COAL ROAD’ WWW.NEWS.MN PUBLISHED:2018/11/17      8 MONGOLIA SHAKEN BY WIDENING LOAN SCANDAL WWW.ASIA.NIKKEI.COM PUBLISHED:2018/11/17      9 MONGOLIA’S UNEMPLOYMENT FALLS BY 2.2 PERCENT WWW.NEWS.MN PUBLISHED:2018/11/16      10 MEETING MEAT DEMAND: MONGOLIA TO TRADE 17.9 PERCENT OF LIVESTOCK WWW.NEWS.MN PUBLISHED:2018/11/16      БНСУ-ЫН АЖ АХУЙН НЭГЖҮҮДИЙН АУТСОРСИНГ ЗАХИАЛГЫГ ГҮЙЦЭТГЭХ ЗАЛУУЧУУДЫГ СОНГОН, ШАЛГАРУУЛНА WWW.UNUUDUR.MN НИЙТЭЛСЭН:2018/11/17     НҮҮРСНИЙ ЭКСПОРТ 10 ХУВИАР ӨСӨЖ, 31.3 САЯ ТОНН БОЛОВ WWW.GOGO.MN НИЙТЭЛСЭН:2018/11/17     СУДАЛГААГААР ЖДҮ ЭРХЛЭГЧИД ЗЭЭЛИЙН ХҮҮНИЙ ЗАРДАЛ ХАМГИЙН ИХ ХҮНДРЭЛ УЧРУУЛДАГ ГЭЖ ХАРИУЛЖЭЭ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/11/17     ERDENE RESOURCE DEVELOPMENT: ХАЙГУУЛЫН ЗАРДАЛ III УЛИРАЛД 42 ХУВИАР БУУРСАН WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/11/17     ГОРХИ, ТЭРЭЛЖИЙН БАЙГАЛИЙН БОХИРДОЛД АНХААРАЛ ХАНДУУЛЖ ЭХЛЭВ WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/11/17     ИРЭХ БААСАН ГАРАГТ ХОТЫН ДАРГЫГ ОГЦРУУЛАХ ЭСЭХИЙГ ХЭЛЭЛЦЭНЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/11/17     “АМГАЛАН” ХОТХОНД БАЙРЛАХ ГЭРТЭЭ КАННАБИС ТАРЬЖ, УРГУУЛЖ БАЙСАН ТУРК ИРГЭНИЙГ БАРИВЧИЛЖЭЭ WWW.MEDEE.MN НИЙТЭЛСЭН:2018/11/17     ӨНӨӨДӨР АВТОМАШИНЫ ДУГААРЫН ХЯЗГААРЛАЛТ ҮЙЛЧЛЭХГҮЙ WWW.EAGLE.MN НИЙТЭЛСЭН:2018/11/17     ГАШУУНСУХАЙТЫН НҮҮРСТЭЙ МАШИНЫ ЦУВАА 120 КМ БОЛЖЭЭ WWW.EAGLE.MN НИЙТЭЛСЭН:2018/11/16     ТАТВАРЫН ОРЛОГО 32.2 ХУВИАР ӨСӨЖ, ТӨСВИЙН ТЭНЦЭЛ 341.9 ТЭРБУМ ТӨГРӨГИЙН АШИГТАЙ ГАРЛАА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/11/16    

Events

Name organizer Where
Frontier's "Invest Mongolia Tokyo 2018" Frontier Securities Tokyo Japan
"Open to Export" ICC WTO International business award ICC WTO London

NEWS

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October 25, 2017 trading report www.mse.mn

On October 25, 2017, 162,162 shares of 27 firms listed as Tier I, II, and III were traded. 7 firms’ shares increased in price, 18 decreased and 2 remained unchanged. Mongol Savhi JSC /UYN/ was the top performer, increasing 8.36 percent, whereas Kherlen Carpet JSC /HRL/ was the worst performer, decreasing 12.19 percent.

On the secondary market for government securities, 137,974 bonds worth MNT13.6 billion were traded.

The MSE ALL Index decrease 0.34 percent to stand at 1,140.82. The MSE market cap stands at MNT 2,223,658,418,161.

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-DI Above +DI on Shares of Mongolia Holdings Inc (MNHD) www.stockpressdaily.com

Focusing in closer on shares of Mongolia Holdings Inc (MNHD), we have seen that the Minus Directional Indicator is presently above the Plus Directional Indicator. Traders tracking these indicators might be looking for the stock to be gaining bearish momentum.

At the time of writing, the 14-day ADX for Mongolia Holdings Inc (MNHD) is 7.20. Many technical chart analysts believe that an ADX value over 25 would suggest a strong trend. A reading under 20 would indicate no trend, and a reading from 20-25 would suggest that there is no clear trend signal. The ADX is typically plotted along with two other directional movement indicator lines, the Plus Directional Indicator (+DI) and Minus Directional Indicator (-DI). Some analysts believe that the ADX is one of the best trend strength indicators available.

Traders watching the charts on Mongolia Holdings Inc (MNHD) may be interested in viewing the RSI. In terms of Relative Strength Index, the 14-day RSI is currently sitting at 38.59, the 7-day is 24.95, and the 3-day is spotted at 3.64. The RSI, or Relative Strength Index is a popular oscillating indicator among traders and investors. The RSI operates in a range-bound area with values between 0 and 100. When the RSI line moves up, the stock may be experiencing strength. The opposite is the case when the RSI line is heading lower. Different time periods may be used when using the RSI indicator. The RSI may be more volatile using a shorter period of time. Many traders keep an eye on the 30 and 70 marks on the RSI scale. A move above 70 is widely considered to show the stock as overbought, and a move below 30 would indicate that the stock may be oversold. Traders may use these levels to help identify stock price reversals.

Investors may use various technical indicators to help spot trends and buy/sell signals. Presently, Mongolia Holdings Inc (MNHD) has a 14-day Commodity Channel Index (CCI) of -118.78. The CCI was developed by Donald Lambert. The assumption behind the indicator is that investment instruments move in cycles with highs and lows coming at certain periodic intervals. The original guidelines focused on creating buy/sell signals when the reading moved above +100 or below -100. Traders may also use the reading to identify overbought/oversold conditions.

Technical analysts may be interested in how Mongolia Holdings Inc (MNHD) is trading in relation to some moving averages. Presently, the 200-day MA is resting at 0.19, and the 50-day is 0.08. Moving averages are considered to be lagging indicators that simply take the average price of a stock over a specific period of time. Moving averages can be very useful for identifying peaks and troughs. They may also be used to help the trader calculate reliable support and resistance levels for the stock.

When applying indicators for technical analysis, traders and investors might want to look at the ATR or Average True Range. The current 14-day ATR for Mongolia Holdings Inc (MNHD) is currently sitting at 0.01. The ATR basically measures the volatility of a stock on a day-to-day basis. The average true range is typically based on 14 periods and may be calculated daily, weekly, monthly, or intraday. The ATR is not considered a directional indicator, but it may reflect the strength of a particular move.

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Government proposes to allocate allowance of MNT 300 thousand to all state servants www.montsame.mn

Ulaanbaatar /MONTSAME/ The Government has reached to agreement with the International Monetary Fund on allocating single-benefit allowance of MNT 300 thousand to each 192 thousand state servants.

On October 24, the Parliamentary Standing Committee on Budget discussed a draft amendment to the law on the 2017 Budget and Finance Minister Ch.Khurelbaatar said MNT 55 billion will be required for the allowance.

“Salary and premium of state servants cannot be raised until 2019 according to an agreement with the IMF. However we reached to agreement with the IMF on the single-benefit allowance allocation as state servants salary has not been raised since 2014, while the inflation rate has grown up drastically. We intend to hold talks further with the IMF on state servants’ salary and premium”.

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Mongolia : Technical Assistance Report-Report on the Prices Statistics Mission www.imf.org

In response to a request from the National Statistics Office of Mongolia (NSOM), a technical assistance mission visited Ulaanbaatar, Mongolia during April 17–28, 2017, to provide assistance with updating and improving the Consumer Price Index (CPI) and the Industrial Producer Price Index (IPPI). The mission also provided advice on the Restaurant Index and Export Import Unit Value Indexes (XMUVI), and reviewed the index compilation system used by the NSOM. The mission found the CPI’s expenditure weights were likely to overstate the significance of automobiles and motorcycles as they include secondhand purchases from other households. The next Household Income and Expenditure Survey (HIES) must identify these purchases so that the weights reflect net household expenditure by excluding transactions between households. The mission also recommends an adjustment to the expenditure shares in the updated CPI based on alternative data sources and improvements to the compilation procedure used to estimate the monthly price change for automobiles and motorcycles.

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Mongolia launches $650m bond offering www.ft.com

The Government of Mongolia has launched a $650m bond offering in the latest example of so-called “frontier markets” lowering their borrowing costs by feeding insatiable demand from yield-hungry institutional investors.

The 5.5 year bond, which is expected to price at around 6.1 per cent, is being sold following a road show by the government earlier this month that stopped in London, New York and Boston.The sale, which will be used to buy back and retire existing debt, is being managed by Credit Suisse, Deutsche Bank and JPMorgan.

With any yield at all hard to come by, investors this year have shown an increasing desire to fund governments with lower credit ratings that are borrowing in foreign currencies, in spite of warnings from ratings agencies that many of these “frontier markets” are highly vulnerable to rising global interest rates.

In September Tajikistan managed to raise $500m from an inaugural 10-year international bond sale for which it payed a fixed rate of 7.125 per cent. The month before Iraq raised $1bn with a five-year, 6.75 per cent bond which was six times oversubscribed.

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China's launch of 'petro-yuan' in two months sounds death knell for dollar's dominance www.rt.com

One of the world’s top energy importers, China, is set to roll out a yuan-denominated oil contract as early as this year. Analysts call the plan, announced by Beijing in September, a huge move against the dollar's global dominance.

The so-called petro-yuan is a “wake up call” for investors who haven’t paid attention to the Chinese plans, according to the head of Graticule Asset Management Asia Adam Levinson, as quoted by Bloomberg.
Earlier this year, the Chinese government announced plans to start a crude oil futures contract priced in yuan and convertible into gold. The contract will enable the country's trading partners to pay with gold or to convert yuan into gold without the necessity to keep money in Chinese assets or turn it into US dollars.

The new benchmark will reportedly allow exporters, such as Russia, Iran or Venezuela to avoid US sanctions by trading oil in yuan.

The analyst said the new contract would be able to serve as a hedging tool for Chinese corporations, as well as support the government’s broader plans to extend the use of the national currency in trade settlement.

According to Levinson, Chinese companies might grow into anchor investors in Saudi Arabia’s initial public offering of its national oil giant, Saudi Aramco.

At the same time, some analysts are skeptical of China’s ambitious plan to create its own benchmark.

“Game changer it is not — at least not yet. But it is another indicator of the beginning of the glacial, and I emphasize the word glacial, decline of the dollar,” said Gal Luft, co-director of the Institute for the Analysis of Global Security, as quoted by CNBC.
The end of US dollar hegemony has been a consistent message from Russian President Vladimir Putin.

“Russia shares the BRICS countries’ concerns over the unfairness of the global financial and economic architecture, which does not give due regard to the growing weight of the emerging economies. We are ready to work together with our partners to promote international financial regulatory reforms and to overcome the excessive domination of the limited number of reserve currencies,” Putin said two months ago during the BRICs summit in Xiamen.

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No direct Myanmar-Mongolia flight yet www.mmtimes.com

Myanmar and Mongolia has no plans to launch direct flights between both capitals at the moment despite signing a landmark aviation treaty last month, according to officials. 

The aviation pact was inked during the 4th ASEM Transport Ministers’ Meeting that was held in Indonesia from September 26 to 28. 

Both countries can operate direct flights based on the bilateral aviation agreement but no proposal yet for such a flight, U Ye Htut Aung, deputy director general of Department of Aviation told The Myanmar Times on October 20. 

“They can fly directly from and to Myanmar and Mongolia if any airlines are interested. But we haven’t received any proposal yet for direct flight between the two countries,” he said. 

According to the Freedom of Air Agreement between Myanmar and Mongolia, airlines can stop over in Myanmar and continue their journey to other destinations, for instance to Singapore or Malaysia, he said. 

Myanmar has signed aviation agreements with 48 countries.

The Ministry of Finance and Planning said, trade volume between both nations remained small and during the 2015-2016 fiscal year the value was only more than US$360,000.

“Mongolia is not a big country to deal with Myanmar in terms of foreign trade. We used to export garments to Mongolia and Mongolia imported whipping cream. The amount of trade volume is not much difference between us,” U Khin Maung Lwin, assistant permanent secretary of Ministry of Finance and Planning said.

Bilateral trade was about $40,000 in 2016-17 fiscal years and Myanmar exported $12,000 worth of goods until October in this fiscal year.

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Operational update - 3D seismic campaign www.petromatadgroup.com

Seismic Acquisition Campaign

· The Company has signed the contract with BGP Inc (a divisions of China National Petroleum Company) for 3D and 2D seismic work in Blocks IV and V

· Preliminary mobilization and camp construction is already underway, allowing for immediate preparatory and long lead work to begin

· The 218km2 3D survey in Blocks IV and V will be the first ever 3D seismic acquired in western Mongolia

Further to its announcement of 4 October 2017, the Company is pleased to provide the timelines and details regarding the planned seismic work programme following the signing of the BGP contract, as detailed further below. The 220km2 3D survey will be the first ever 3D seismic acquired in western Mongolia. It will be conducted over the Tugrug Basin of eastern Block V, a longstanding priority basin for Petro Matad with a proven working petroleum system including mature source rock, reservoir rocks with good porosity & permeability and live hydrocarbon staining found in previous stratigraphic coring operations. 

The survey in the Tugrug Basin of Block V is expected to begin 3D data recording operations by mid-November and to be completed by mid-December, 2017. The crew will then begin a 150 line km infill 2D survey in the same area, extending outward from the 3D, to cover surrounding prospects and leads. No camp move is required so the 2D acquisition can begin seamlessly after completion of the 3D. As such, the estimated completion date of the Tugrug Basin 2D program will be two weeks after the 3D. 

Following completion of the Tugrug Basin 2D, the crew and camp will move 350km NW into Block IV to acquire a new 205 line km 2D seismic grid over the Khangai Basin. The Khangai Basin is a deep and prospective basin in north-central Block IV. It has been high graded following the results of the airborne FTG/HRAM survey of 2015. Whilst only two regional 2D seismic lines currently cross the Khangai Basin, these lines show adequate basinal depths (3500M-4000M) and prospective structural and stratigraphic configurations. The Khangai Basin 2D survey is projected to start in late December, and complete before the end of January 2018. 

Processing of both the 3D and 2D data has been contracted to Western GeCo (a division of Schlumberger Limited). The data will be delivered to the processors in near real time to allow maximum efficiency and return of processed data to the Company. Both the 3D and 2D programs are focused on high grading specific leads and prospects to potential drilling targets for the 2018/19 operational seasons.

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Government of Mongolia markets 5.5-year US dollar bonds www.kitco.com

HONG KONG, Oct 25 (IFR) - The Government of Mongolia, rated Caa1/B-/B-(Moody's/S&P/Fitch), is marketing 5.5-year US dollar senior unsecured bonds at initial price guidance of 6.125% area.

The benchmark-sized 144A/Reg S notes have expected ratings of B-/B- (S&P/Fitch) and will price today.

Proceeds will be used for the repurchase of the US$500m 4.125% notes due January 2018 and Rmb1bn (US$151m) 7.50% Dim Sum notes due June 2018 via tender offer, as well as to retire certain of the government's external debt.

Credit Suisse, Deutsche Bank and JP Morgan are joint bookrunners on the transaction.

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Commerzbank hires advisers amid interest of European peers: sources www.reuters.com

MUNICH/FRANKFURT (Reuters) - Commerzbank is working with two investment banks to prepare itself for the event of a takeover bid from a European rival, several people close to the matter said.

Germany’s second-largest lender has hired Goldman Sachs and Rothschild to evaluate its options, including a possible defense scenario, they said. Commerzbank, Goldman Sachs and Rothschild all declined to comment.

Commerzbank has been restructuring ever since an ill-timed acquisition of Dresdner Bank for 9.8 billion euros ($11.53 billion) in 2008. The move forced Commerzbank to take a government bailout, slash jobs, close hundreds of retail branches and rein in its investment banking.

But its strong corporate lending business - Commerzbank specializes in financing Germany’s prized Mittelstand of medium-sized companies - makes it an attractive target for European peers eyeing a stronger footprint in Europe’s largest economy.

Italy’s UniCredit recently told Berlin it is interested in eventually merging with Commerzbank, people familiar with the matter told Reuters last month.

The bank has also caught the eye of other European peers. But the German government, which still holds a 15.6 percent stake, last month denied a report that it favored a merger of Commerzbank with France’s BNP Paribas.

Berlin has said it would be willing to eventually sell the stake but it needs to get at least 18 euros per share in any sale to avoid a loss on its investment.

Shares in Commerzbank, which has a market capitalization of 14.4 billion euros ($16.93 billion), were up 2.5 percent at 11.71 euros by 0800 GMT.

While a foreign peer may eventually succeed in buying the lender, a consolidation within Germany is also on the cards.

Top executives at Commerzbank and bellwether Deutsche Bank held unsuccessful talks on a combination last year, a person with knowledge of the matter said at the time.

Regardless of the outcome, private equity firm Cerberus stands to gain from any deal after recently becoming Commerzbank’s second-largest investor with a 5 percent stake.

Goldman Sachs had been in contact with Commerzbank for months, but the mandate was formalized after Cerberus’ investment in the summer, a person close to the matter said.

The bank mandates were earlier reported by the Financial Times.

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