Tuesday, August 26, 2014

Executive Summary                       

The MSE benchmark Top 20 index fell slightly last week and closed at 16,000.22, down 28.77 units (0.18%) from the previous week.

A total of 3,975,416 shares with value of MNT 593.55 million were traded during the week, which represents volume increase of 3,903,508 shares as well as a value increase of MNT 463.86 million from the previous week. There were a total of 151 transactions. 


Most Traded Shares by Volume and Value

There was a large transaction made on Genco Tour Bureau (“JTB”)’s 3,515,540 shares with value of MNT 316.40 million. Genco Tour Bureau is the largest market shareholder in Mongolian tourism sector, and this transaction was block trade, hence there are two different JTB’s share volume figures on the table. Property development and asset management company, the Mongolian Development Resources (“MDR”) was second highest traded stock, in terms of volume and value as 221,381 shares were exchanged with value worth of MNT 132.90 million.


Biggest Winners

Groceries producer, the Darkhan Khuns (“DHU”), was the biggest gainer and traded at MNT 4,475.00, a 20.95% increase from the previous week. Auto Impex (“AOI”) and Shivee Ovoo (“SHV”) also showed strong advances with shares increasing by 15.00% and 10.91% respectively.

Biggest Losers

Shoe maker the Gutal (“GTL”) has declined by 1,000 MNT or 8.33% to trade at MNT 11,000.00. Mongolian Development Resources (“MDR”) faced the second most significant loss with its share price dropping by 7.81% (MNT 51.00).

APS Analysis & Review
Trading value of the MSE Top 20 index slightly decreased this week. Majority of trade was made on the Genco Tour Bureau (“JTB”) in terms of value, which was 53.96% of total trade.

On August 18, the MSE reported that the Hai Bi Oil (“HBO”) has sent a request to issue additional shares. The company has MNT 8.98 billion convertible debt, and by the shareholders meeting they have decided to issue 45 million additional shares at 200 MNT. MSE will decide and give formal notice by regulated time. Asia Pacific Securities's rating on HBO’s stock is a “BUY”.
On August 19, Davaanbulag (“DBL”) has made a change on its listing rules and reduced their ordinary shares to 34,637 from 103,703.
BDSec JSC has requested to issue 6 million additional shares, and MSE has approved this request on August 19. Therefore, after the issuance the company will have 17,000,000 ordinary shares. According to their report, the rights holders can buy the shares at 1,931 MNT, and new investors can buy the shares at least 2,146 MNT. APS has made stock recommendation on BDSec after this announcement, and the rates the stock as “SELL”.
On August 22, the interim CEO of MSE Angar. D has received the visit of the officials from “Khan Investment Management” and “Asia Capital & Advisors”. They have exchanged views on Mongolian capital market’s prospect and the new financial instruments that will be introduced soon.

By resolution No.178 of 2014 of Minister of Finance, a working group was established to develop Government securities domestic market, to increase competition and transparency for participation of foreign and domestic investors, to develop and to improve securities trading, clearing and settlement systems. On August 21, the working group made recommendations that are related to governments securities are supposed to conducting through Stock Exchange.

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