MONTSAME National News Agency, together with MICC Mongolia International Capital Corporation, presents a weekly overview of Mongolia’s domestic capital market and economy.

 Weekly Capital Market and Economic Overview

(2026.04.27–2026.05.01)

 MONGOLIAN STOCK EXCHANGE

A total of 5.19 million securities units, worth MNT 14.48 billion, were traded on the Mongolian stock exchange throughout the week. Invescore NBFI JSC, Khan Bank JSC, Trade Development Bank, Mongolian Stock Exchange JSC, and Golomt Bank JSC led by trading value. During this period, a total of one block trade was conducted.

A total of 115,000 shares of Invescore NBFI JSC (INV) were traded at MNT 10,560 per share, amounting to MNT 1.2 billion.
 
Last week, indices on the Mongolian Stock Exchange maintained their upward momentum, signaling a continued recovery trend. The TOP-20 Index rose by 1.04%, the MSE A Index by 0.59%, and the MSE B Index by 1.09%, indicating stable buying activity in the market. Notably, the rise in the MSE B Index suggests increased activity in the small-cap segment, with growth beginning to broaden across the market.

 These movements reflect easing pressure following the ex-dividend period and indicate that the market may be transitioning from a short-term recovery phase to a more stable growth stage. However, the rally is not yet fully broad-based, and secondary market liquidity remains limited. As such, the current uptrend can still be viewed as a continuation of a post-correction recovery, with future direction likely to depend heavily on broader participation and improved liquidity.

 MONETARY POLICY COUNCIL TIGHTENS REQUIREMENTS ON FOREIGN FUNDING

 At its meeting on April 28, 2026, the Monetary Policy Council of the Bank of Mongolia decided to revise reserve requirements related to banks’ foreign funding. Starting October 1, 2026, 25% of foreign currency bonds and loans with maturities between 360 days and three years raised from international markets will be subject to reserve requirements.

 Policy rationale and scope:

Rising external dependence: The share of foreign funding in banks’ total liabilities has steadily increased in recent years, raising external vulnerability.
Shift toward long-term stability: The measure aims to discourage short- and medium-term external borrowing while promoting more stable, long-term funding.
Reducing FX and maturity mismatches: Foreign currency borrowing used for local-currency lending creates currency and maturity risks; the policy seeks to mitigate these.
Stress test results: According to MPC stress tests, banks remain adequately capitalized and resilient even under major macroeconomic shocks.
Lower cyclical risk: The financial cycle is assessed to be more balanced compared to previous periods, allowing room for further macroprudential measures.
 
The decision comes amid increasing reliance on short- and medium-term external financing. The MPC emphasized that the measure is intended to encourage a shift toward longer-term, more stable funding structures and reduce associated risks.

It also highlighted ongoing global economic uncertainty, noting that the cost and availability of external financing may fluctuate in the short term, potentially affecting capital flows.

 Overall, this policy adjustment represents a macroprudential step aimed at reducing excessive reliance on foreign funding and strengthening financial system stability. Further policy measures will be implemented gradually depending on macroeconomic and financial conditions.

 Investors holding bank stocks listed on the Mongolian Stock Exchange are advised to closely monitor upcoming quarterly reports for changes in funding structures, external borrowing levels, and associated costs. The 25% requirement is expected to increase the cost of short- to medium-term foreign funding and may put pressure on banks’ funding structures and lending rates, particularly for those with higher reliance on external financing.
LEGAL FRAMEWORK TO ENABLE INHERITANCE OF “ERDENES TAVANTOLGOI” SHARES

At its regular meeting on April 29, 2026, the Government approved a resolution outlining certain measures related to shares of “Erdenes Tavantolgoi” JSC. The resolution instructs relevant authorities to organize the legal transfer and inheritance of 1,072 shares held by 132,203 deceased citizens, as recorded in the Central Securities Depository as of December 31, 2025.

 How to inherit the shares:

Notary process: Heirs (family members or relatives) must first establish inheritance rights through a нотари.
Securities account: Once notarized, the shares must be transferred and registered under the heir’s name at the Central Securities Depository.
Dividend entitlement: After the transfer, heirs will also gain the right to receive accumulated dividends from previous years.
Currently, unpaid dividends from prior years have been held in state accounts. Completing the inheritance process will allow eligible citizens to claim these accumulated earnings.
Timeline: After preparatory work is completed, the process is expected to begin on June 1, 2026.
 
The Cabinet Secretariat noted that this resolution also supports preparations for “Erdenes Tavantolgoi” to become a publicly listed company by 2026.

Importantly, the resolution does not permit the buying or selling of shares. Under Government Resolution No. 181 (2012), restrictions on transferring or disposing of shares remain in place until secondary market trading is officially opened.

 BANK OF MONGOLIA PURCHASES 1.06 TONNES OF PRECIOUS METALS IN APRIL

 In April 2026, the Bank of Mongolia purchased 1,057.7 kg of precious metals, bringing total purchases since the beginning of the year to 4.3 tonnes. This marks a 30.7% increase compared to the same period last year, indicating stronger gold supply activity.

Regionally, purchases were concentrated in specific areas: the Bayankhongor branch acquired 1,020.3 kg, while the Darkhan-Uul branch purchased 124.2 kg, suggesting supply concentration in certain regions.
The Bank of Mongolia’s purchase price is linked to international market prices. In April 2026, the average gold purchase price stood at approximately MNT 541,552 per gram. Elevated global gold prices continue to incentivize domestic supply and encourage producers to participate more actively in the market.

The increase in precious metal purchases supports Mongolia’s foreign exchange reserves and contributes positively to macroeconomic stability. Gold supply is expected to remain stable in the near term.

Published Date:2026-05-06