December 12, 2017 trading report www.mse.mn

On December 12, 2017, 463,666 shares of 22 firms listed as Tier I, II, and III were traded. 10 firms’ shares increased in price, 10 decreased and 2 remained unchanged.MND JSC /DLH/ was the top performer, increasing 14.93 percent, whereas Bulgan Guril Tejeel JSC /GTJ/ was the worst performer, decreasing 13.04 percent.

Express train in route Ulaanbaatar and Irkutsk launched www.montsame.mn

Ulaanbaatar /MONTSAME/ The first travel of express train in a route Ulaanbaatar and Irkutsk was conducted on December 11. 

MPP caucus focuses on its legislative process and goals www.mongolia.gogo.mn

The Mongolian People’s Party (MPP) caucus in Parliament discussed two key legislative issues during its December 11 meeting.

The caucus members agreed to determine processes for party review of proposed legislation, based on proposals from party members on submitted laws. The caucus also agreed to draft amendments to the Law on the Rehabilitation of Victims of Political Repression and Granting Compensation.
Caucus Chairman D. Khayankhyarvaa said, “There are numerous amendments submitted to Parliament. The drafts include proposals from members of the MP and Democratic Party caucuses.” It was decided that amendments to the Law on the Rehabilitation of Victims of Political Repression and Granting Compensation should be approved by 2019, after properly reviewing and researching the impact of changes to the existing legislation.
D. Khayankhyarvaa also mentioned that MPP working groups have been established to work on amendments to the Law on Elections and the Law on Political Parties.

Mongolia and Italy sign memorandum on maritime transport www.montsame.mn

Ulaanbaatar /MONTSAME/ Mongolia and Italy signed a Memorandum on Cooperation in Maritime Transport, Seaport Access and Logistics on December 6 in Geneva.

Mongolian herders supply to international cashmere brand www.mse.mn

Luxury goods companies have increasingly opted to source their cashmere from Mongolia. As a result, the country's exports of cashmere garments have nearly tripled from 2009 to 2016, according to a 2017 report by the Mongolia International Capital Corp. (MICC), a regional investment bank.

Weekly trading report www.mse.mn

During the week spanning December 04 to December 08, 2017, MNT6,562,131,379 worth of securities were traded through 5 trading sessions on the MSE. The daily average MNT volume was MNT1.3 billion.

December 11, 2017 trading report www.mse.mn

On December 11, 2017, 1,282,398 shares of 52 firms listed as Tier I, II, and III were traded. 29 firms’ shares increased in price, 17 decreased and 6 remained unchanged. E-Trans BayanTeeg JSC /BTG/ was the top performer, increasing 11.55 percent, whereas Nekheesgui Edlel JSC /NXE/ was the worst performer, decreasing 14.29 percent.

JD to invest $150m in green technology www.chinadaily.com.cn

JD Logistics, the logistics arm of the country's second-largest e-commerce player JD.com Inc, announced decision to invest 1 billion yuan ($151 million) to establish a green fund, in a bid to promote the use of sustainable, greener packaging materials throughout the supply chain.

Russia signs deal to build Egypt's first nuclear power plant www.rt.com

Moscow and Cairo have signed an agreement to construct Egypt’s first nuclear plant. The project will cost $21 billion and is due to be finished by 2028-2029.

The preliminary agreement between the countries was signed in 2015. A loan from Russia would cover 85 percent of the construction costs, and Russia's Rosatom would service the plant’s four reactors for 60 years, company chairman Aleksey Likhachyov said on Monday.

Asia shares take breather, Brent breaks above $65 www.reuters.com

SYDNEY (Reuters) - Asian shares took a breather on Tuesday after three straight sessions of gains, with markets consolidating in the hope an upswing in global growth could outlast a likely hike in U.S. borrowing costs this week.

A pedestrian stands to look at an electronic board showing the stock market indices of various countries outside a brokerage in Tokyo, Japan, February 26, 2016. REUTERS/Yuya Shino
The latest promising news came from China where banks doled out a surprisingly generous dose of credit in November, which could bode well for a pick up in retail sales and industrial output due later in the week.

MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS dithered either side of flat having bounced 2 percent in the past three sessions.

Moves were minor across the region, with blue chip Chinese shares off 0.2 percent .CSI300 and Australia up 0.1 percent . Japan's Nikkei .N225 was likewise steady, after the index scored its highest close in 25 years on Monday. [.T]

There was no lasting market impact from an explosion in New York’s busy Port Authority commuter hub which New York Mayor Bill de Blasio described as an “attempted terrorist attack.”

Investors continued their policy vigil with the Federal Reserve set to end its two-day meeting on Wednesday, while the European Central Bank meets on Thursday.

JPMorgan Economist David Hensley suspects the Fed will revise up its growth forecast while trimming the outlook for the unemployment rate, potentially adding upside risk to the “dot plot” forecasts on interest rates.

“The dot plot previously called for three hikes in 2018; it is a close call whether this moves to four hikes,” he warned, a shift that would likely boost the dollar but could bludgeon bonds.

“For its part, the European Central Bank (ECB)is likely to emphasize its low-for-long stance and continue to distance itself from the Fed,” he added. “The staff is likely to revise up its 2018 growth forecast, while we think the core inflation forecast will reveal an even slower recovery than before.”

RATES NOT EVERYTHING

The divergence in Fed and ECB policy was supposed to be bullish for the dollar, given it had widened the premium offered by U.S. two-year yields US2YT=RR over German yields DE2YT=RR to 256 basis points from 188 basis points this time last year.

The last time the spread was that plump was in 1999.

China Securities Index Co Ltd
4067.0862
.CSI300CHINA SECURITIES INDEX CO LTD
-2.41(-0.06%)
.CSI300
.CSI300.N225AAPL.O
Yet the euro is currently up 12 percent on the dollar this year, while the dollar is down 8 percent on a basket of currencies .DXY - an indication interest rate differentials aren’t everything in forex.

On Tuesday, the euro was steady at $1.1768 EUR= having failed to clear resistance around $1.1812 overnight. The dollar was idling at 113.48 yen JPY=, just off a one-month top of 113.69.

Dealers at Citi noted interbank volumes in the forex market had been 35 percent below average overnight and another thin session was likely on Tuesday.

There was a little more action in bitcoin, which was last at $16,350 on the Bitstamp exchange BTC=BTSP while its newly minted futures contract <0#XBT:> fell back to $17,800.

In commodity markets, gold remained out of favor at $1,243.90 an ounce XAU= having suffered its biggest weekly drop since May last week.

Oil prices pushed ahead in the wake of news of a temporary shutdown of a pipeline that carries the biggest volume of the five North Sea crude oil streams. [O/R]

Brent crude futures LCOc1 rose another 38 cents to $65.07 a barrel, after jumping $1.35 on Monday. U.S. crude futures CLc1 added 26 cents to $58.25 a barrel.