Ulaanbaatar, June 10, 2026 /MONTSAME/. MONTSAME National News Agency, in cooperation with MICC Mongolia International Capital Corporation LLC, is delivering a weekly overview of domestic and international capital markets and economic developments to its readers.

Weekly Capital Market and Economic Review (June 2–June 8, 2026)

MONGOLIAN STOCK EXCHANGE

A total of 5.6 million securities worth MNT 11.54 billion were traded on the Mongolian Stock Exchange over the past week. In terms of trading value, leading companies included MGL Aqua JSC, MIC Holding JSC, Khan Bank JSC, Invescore NBFI JSC, and Trade and Development Bank JSC. During this period, three block trades were executed, specifically:

• 2.9 million shares of MGL Aqua JSC (MGLA) at MNT 250 per share, totaling MNT 749 million;
• 45.4 thousand shares of Invescore NBFI JSC (INV) at MNT 8,000 per share, totaling MNT 363.9 million;
• 55.1 thousand shares of MIC Holding JSC (MIK) at MNT 1,275 per share, totaling MNT 725.7 million.

All major indices of the Mongolian Stock Exchange closed lower last week, while overall market conditions remained relatively stable. The TOP-20 Index declined by 0.02% to 51,347.33 points. The MSE A Index fell by 0.80% to 19,565.06 points, indicating reduced trading activity in high-cap stocks. Meanwhile, the MSE B Index recorded the largest drop, falling by 0.91% to 14,196.18 points, reflecting relatively weak movement among smaller-cap stocks. Overall, the decline was evenly distributed across all market segments.

EFFORTS INTENSIFY TO BRING BORTEEG COAL DEPOSIT INTO ECONOMIC CIRCULATION

The Government of Mongolia has set a target to bring the Bortee coal deposit into economic circulation starting in 2026, with plans to mine 15 million tonnes of coal annually and export 10 million tonnes. The deposit contains total reserves of 424 million tonnes, of which 95% is weakly coking coal and 5% is thermal coal.

As part of the project, the government has conducted an open selection process for foreign investors, aiming to generate an additional USD 1 billion in revenue. As a result, Erdenes Tavan Tolgoi JSC submitted the highest-rated proposal and will manage the deposit while conducting extraction in cooperation with domestic enterprises.

Under the contract terms, Mongolia’s share of the benefits is estimated at 70%, with the possibility of receiving a total advance payment of USD 1 billion within the first five years.

Among other bidders, China’s Baowu Resources offered a USD 600 million advance payment with a 51.7% share, while China Energy Materials & Technology Xuzhou proposed a USD 1 billion advance but with a 51% share for Mongolia.

However, attention is drawn to Mongolia’s prior long-term coal supply agreement with China, under which the country is obligated to supply coal at discounted prices for 16 years. As a result, despite a state-owned company winning the tender, there remains a risk that the actual economic benefits of the deposit may be reduced, while the Chinese side could retain a more advantageous economic position.

FROM RAW MATERIALS TO FINAL PRODUCTS: WHAT CHANGES WILL THE “WHITE GOLD” PROGRAM BRING TO LIGHT INDUSTRY?

One of the major weaknesses of Mongolia’s economy is its heavy reliance on the mining sector. Mining accounts for around 70% of industrial output, while 86% of exports are directed to China. In other words, any decline in Chinese demand or global commodity prices directly shocks the Mongolian economy. To address this vulnerability, developing other sectors has become essential—among them, the cashmere industry stands out as a highly promising solution.

Although Mongolia is among the world’s leading suppliers of wool and cashmere, it does not fully capitalize on this resource. Agriculture contributes only about 10% of GDP, and despite overall economic growth of 7% last year, the sector itself contracted by 8.9%. Foreign investment in agriculture remains extremely low, totaling just USD 1.2 million in 2023.

While 95% of agricultural exports consist of cashmere, only 25% is processed domestically, with the remaining 75% exported as raw material. As a result, profits from value-added products remain minimal. Estimates suggest that fully processing these raw materials domestically could generate up to USD 1.5 billion in additional annual revenue.

The “White Gold” national program is designed to address these shortcomings. With a budget of MNT 2.2 trillion over three years, it aims to:

• Increase domestic processing from 20% to 40%;
• Boost cashmere exports from USD 398 million to USD 690 million;
• Expand total production from MNT 1.5 trillion to MNT 2.3 trillion.
 
The program is also expected to create over 8,200 new jobs, marking a significant transformation for the sector.

However, a key concern remains whether the program will effectively reach its target beneficiaries. While 31.2% of the funding will come from the state budget, the remainder is planned to be financed through bank loans—potentially limiting access for small and medium-sized enterprises.

Urin.N

Published Date:2026-06-11