MSE warns to delist firms that fail to deliver reports www.zgm.mn
In order to improve the transparency in the financial market, Altai Khangai, CEO of the MSE, warns to delist publicly traded firms in case of failure to deliver financial and operational reports.
On the list of firms with good governance, the recent IPOs are at the forefront; for example, LendMN JSC was the first company to turn in their 2018 financial and operational reports. The company earned a net profit of MNT 2.5 billion last year, making it possible for the company to distribute dividends this year. Additionally, the company recently announced to introduce an international transaction service by cooperating with “Transfer To” inc. According to Marketinfo, the board of LendMN has approved the CEO to sign MNT 1.4 billion worth deal with Transfer To.
Also, the MSE Tier-II listed company Mongol Savkhi JSC’s sales revenue totaled MNT 270 million in 2018, which is about 9.4 percent lower than the previous year. The stock price of the company, which manufactures leather and felt products, stood at MNT 480 per share as of February 2, which is a 50 percent fall year over year.
The net loss of the state-owned Darkhan Thermal Power Plant JSC reduced to MNT 1.8 billion last year. This is about 25 percent lower than in 2017. The 2018 financial report of the company shows that the cut in losses was mostly driven by the reduced foreign exchange losses.
Last year, a total of 130 MSE-listed firms have disclosed their financial and operational reports. The remaining 80 companies did not share their financial information to shareholders. Thus, in order to protect the investors’ rights, the MSE has warned to delist publicly traded companies that failed to disclose their reports or organize shareholders’ meetings.
In January, the market capitalization of the MSE diminished by 2.53 percent (MNT 63.5 billion), to MNT 2.4 trillion with the Top 20 Index growing 0.43 percent. Specifically, stock trades accounted for 97 percent of total trades and securities - 3 percent. Compared to January 2018, stock trades jumped by 5 times and securities trade was cut by 45 times. While the new IPOs had the biggest impact on stock trades, the suspension of Government securities trades at the primary market resulted in inactivity in the overall securities market.
Published Date:2019-02-12