Mongolia's stock market growth leads the world

• 2021 marks the 30th anniversary of the establishment and development of the stock market in Mongolia. The Mongolian Stock Exchange has not been as successful in 2021 as it was in the mid-sixties.
• Especially during the difficult years of the pandemic, significant changes in people's investment attitudes have encouraged the sector to take a big step forward.
• In Mongolia, a first domestic infection was registered in late 2020, and in April 2021, when the last severe quarantine was imposed, MNT 300,000 was distributed to each citizen in cash. Prior to that, the government had zeroed social security contributions, deferred mortgage payments, and paid for water, electricity, and heating. However, experts say that such anti-pandemic measures around the world have increased people's interest in investing.
• In Mongolia, too, this phenomenon has helped bring stock market valuations to historic highs. For instance, the market capitalization of the Mongolian Stock Exchange reached MNT 5.8 trillion for the first time. As of December 20, this figure is twice as large as the previous year.
• The TOP-20 index, which determines the scope and trends of the domestic stock market, reached 49,252 points, an increase of 121% from last year. As a result, Mongolia has led the world stock market in growth in 2021. Based on this indicator, Bloomberg, an international financial information agency, named Mongolia as the fastest growing market in the world.
• 75% of Mongolia's population or 2.5 million people now own securities accounts. Although not everyone is active, having an account is the first step in investing in this market.
• As of December 20, 2021, the Mongolian Stock Exchange traded a total of 1.4 trillion MNT worth of securities, which is also the highest figure in its 30-year history.
• The average daily trade is 5.8 billion MNT, which is 22 times more than the previous year.
• There has been talk for many years about the potential for investment in the stock market, but the poor choice of products. Since 2019, the range of new products on the Stock Exchange has increased, and in 2021 alone, NINE new products have been offered.
• In particular, it should be noted that for the first time, Mongolians have the opportunity to own shares in commercial banks as part of the reform of the Banking Law.
• For the first time in its history, 37 companies paid a total of 162 BILLION MNT in dividends to their shareholders. This is an increase of 6% from last year.
• FTSE RUSSELL, an international leader in stock market indexing and research, is on the emerging market watch list. Although the Mongolian stock market was removed from the list in 2017, it was returned to the “Watch List” as a result of close cooperation between professional market organizations and several meetings between the MSE and the FTSE Russell Group. Being on this watch list has the advantage of increasing the number of international investors and expanding the market.
• The Mongolian Stock Exchange has started cooperation with the Shanghai Stock Exchange. Cooperation with the stock exchange, one of the world's top five stock exchanges, was an important step in further foreign cooperation. However, there is still a need for the government and the private sector to work together to promote the Mongolian economy and stock market to international financial centers.

Source: ikon.mn