2015-01-19

Daily Report
Report
Daily
|
NEWS & ANALYSIS

19 January 2015

2015.01.19
Performance

Last
14,608.25
17,511.57
2,019.42
4,634.38
14,309.41
6,550.27
5,366.70
24,103.52
186.99

YTD change %

-0.02
1.10
1.34
1.39
1.91
0.79
1.27
-1.02
0.06

-1.66
-1.75
-1.92
-2.15
-2.21
-0.24
-0.82
2.11
1.59

COMMODITY PRICES

Performance

Last
USD
136.92
2,091.75
68.80
5,768.00
48.68
1,278.04
17.77

YTD change %

0.00
1.83

-1.16
-3.47
-49.33
-9.42
-8.62
7.91
13.10

1.53
-0.02
-0.19
-0.11

MONGOLIAN ECONOMIC INDICATORS

Last

2014.09
2014.09
2014.11
2014.11
July 31 ,2014

11,094
16,517
1,352.1
12.00

Last

Yield

YoY change
%
7.0
18.8
11.5
-41.5

DEBT MARKET

94.00
66.50
91.08
83.04
99.50
98.31
96.88
104.52

Maturity date

8.847
31.056
7.197
7.911
9.260
13.267
11.523
0.964

3/21/2017
3/29/2017
1/5/2018
12/5/2022
9/20/2015
11/17/2015
1/21/2017
12/25/2023

INDICES CHANGE

-2.60

0.79

3.69

1.35

Hang Seng -1.02

2.11
1.27

FTSE 100

-0.82

0.79

S&P/TSX comp

-0.24
1.91

1.39

Nasdaq
DJIA

-2.21
-2.15

1.10

-1.75
Volume
-1.66
YTD %

MSE TOP 5 MOST TRADED

Trade value '000

0.00%
-1.39%

2,000

4,000

-15%

-10%

-5%

0%

March-14

January-14

-12.31
%
6,000

0
February-14

-4.53%
4,150

2,000

0
December-13

DLG

4,000

2,000
October-13

1,688

6,000

November-13

MIB

8,000

4,000

-2.63%

1,647

10,000

6,000

September-13

TCK

12,000

8,000

July-13

1,005

14,000

10,000

August-13

MMX

16,000

12,000

May-13

960

18,000

January-13

GTL

20,000

14,000

June-13

Change % (Day)

MSETOP Index

16,000

April-13

-0.02

Thousands

MSE - Top20

January-15

S&P/ASX 200

December-14

DAX

October-14

Nikkei 225

GLOBAL NEWS
Asia Stocks Rise After Oil Jumps, U.S. Consumer Confidence Grow
Asian stocks rose, led by materials companies, after oil rebounded and U.S. consumer confidence
jumped to an 11-year high. The MSCI Asia Pacific Index gained 0.6 percent to 138.20 as of 9:01 a.m.
in Tokyo, before markets opened in China and Hong Kong. Futures on the Standard & Poors 500
Index slid 0.1 percent after the gauge climbed 1.3 percent on Friday as energy shares rallied with
Brent crude surging the most in two years. U.S. markets are closed Monday for a holiday. The MSCI
Asia Pacific Index traded at 13.4 times the estimated earnings of its constituent companies as of its
close on Friday, when it capped a second week of declines. That compares with 16.6 times for the
S&P 500. Japans Topix index gained 0.6 percent. Australias S&P/ASX 200 Index rose 1 percent.
New Zealands NZX 50 Index advanced 0.3 percent. South Koreas Kospi index added 0.7 percent.
Brent, the benchmark for more than half the worlds oil, surged 5.2 percent, the most since June
2012, to $50.17 a barrel on Friday. It slipped 0.5 percent today.
http://www.bloomberg.com/news/2015-01-19/asia-stocks-rise-after-oil-jumps-u-s-consumerconfidence-grows.html

November-14

Amt.
issued mln
USD
DBM bond - 5.75
580
MMC bond - 8.875
600
Mongol 2018 - 4.125
500
Mongol 2022 - 5.125
1,000
TDBM 2015 - 8.5
300
TDBM 2015 - 12.5
25
TDBM 2017 - 10 dim sum
115
DBM bond - 1.52 sam.
290
Bonds - Coupon

September-14

RGDP /bln. MNT/

NGDP /bln.MNT/
Inflation
Foreign reserve /mln. USD/
Policy rate

Date

July-14

Indicator

Salary and pensions to be increased by 10 percent

In 2014, the government dedicated 250 billion MNT for pension and salary increases for state
employees. The decision was officially made on January 15 to increase salary and pensions by 10
percent, following the results of a three-party municipal labor concession agreement, the Agreement
of Labor and Society, made between the Labor Ministry, Mongolian Trade Union, and Joint Union of
Employers. Accordingly, a total of 103 billion MNT will be additionally allotted for the increase in the
2015-2016 state budget. Ninety billion MNT will be spent on salary increases for civil servants and 13
billion MNT will be devoted to pension and allowance increases. A discussion regarding when to
increase the salaries and pensions, as well as which departments will first see the increases, will be
held after the approval of 2015 budget amendments. The agreement also includes the decision to
exempt the payment of personal income tax for those earning minimum wage to increase the real
income of taxpayers. The minimum monthly wage in Mongolia is 192,500 MNT, which means that
approximately 12,000 MNT will not be withdrawn from minimum wage salaries each month. The threeparty labor talks also resulted in the agreement that when private sector businesses are about to
make a decision to liquidate, file for bankruptcy, or carry out job cuts, an employer should discuss the
decision in advance with employee protection agencies and take measures to save jobs. Critics
question how the salary and pension increases will be funded when the state budget is in crisis.
According to MP Ch.Khurelbaatar, the government estimates it will be able to finance the expenses
by imposing a tax on imported oil products and increasing the excise tax amount. However, a
decision on these tax changes has not been finalized yet. Labor representatives say there is an
urgent need to increase salaries and pensions, as salary increases are not catching up with inflation
rate increases. According to a survey by Mongol Bank, 1.2 million people are working in the industrial
sector and 35 percent of them took out salary loans of 1.2 trillion MNT. Some sixty-five percent of
pensioners have taken out pension loans.
http://ubpost.mongolnews.mn/?p=13119

August-14

Prime Coking Coal /Tianjin

Zinc Spot /LME
Iron Ore 58%/Tianjin
Copper Spot /LME
Oil
Gold Spot /LME
Silver Spot /LME

Change %
(Day)

May-14

Commodity

External trade reaches USD 11.0 billion

Total external trade turnover of Mongolia reached USD 11.0 billion, of which USD 5,774.6 million was
made up by exports, whereas MNT 5,236.6 million by imports in 2014 after trading with 139 countries.
Total external trade turnover increased by USD 384.3 million or 3.6%; the exports rose by USD
1,505.5 million or 35.3% and imports declined by USD 1,121.2 million or 17.6% against 2013.
External trade balance showed a deficit or USD 2.1 billion in 2013, while it was in a surplus of USD
537.9 million in 2014.
http://en.montsame.mn/economics/item/9911-external-trade-reaches-usd-11-0-billion

June-14

MN
US
US
US
CN
UK
US
HK
ASIA

March-13

MSE - Top20
DJIA
S&P 500
Nasdaq
S&P/TSX comp
FTSE 100
S&P/ASX 200
Hang Seng
Bloomberg/asia.pac

Change %
(Day)

April-14

Country

February-13

Index

MONGOLIAN RELATED NEWS

Auto trade complex to open in March
In order to reduce traffic congestion in UB, it has been decided to resettle open-air markets operating
in the capital. Auto markets are now being relocated and a project to build an auto trade complex
started in March last year. The first stage of the complex was supposed to be launched in October
2014 but work on the complex was postponed. The first stage of the project is almost 80 percent
complete, and the Administration Office of Ulaanbaatar is planning to launch business at the auto
trade complex starting in March this year. The construction of the complex will be ready for 100
percent utilization in June 2015.
http://english.news.mn/content/201475.shtml

19 January 2015

MONGOLIAN RELATED COMPANIES

Chg day %

YTD %

Trade value
000 USD

Market cap
mln USD/

52w high

52w low

Currency
cross

2.730

1.11

-11.94

9,365.0

5,493.58

4.36

2.65

1.00

6.820

-0.15

12.91

13,362.8

1,346.81

7.07

3.16

1.20

HKD

0.320

0.00

-5.88

487.7

382.41

0.84

0.31

7.75

DML CN Equity

CAD

1.090

4.81

-3.54

1,011.3

460.61

1.95

1.02

1.20

Winsway Coking Coal Holdings Ltd

1733 HK Equity

HKD

0.250

1.63

-1.96

82.2

121.70

0.55

0.24

7.75

MoEnCo

276 HK Equity

HKD

0.420

-2.33

5.00

22.0

91.53

1.06

0.38

7.75

SouthGobi Resources

1878 HK Equity

HKD

4.070

6.54

5.44

471.2

114.87

6.20

3.49

7.75

Central Asia Metals PLC

CAML LN Equity

GBp

145.000

0.00

-20.77

34,143.6

244.98

190.00

138.75

0.66

Mongolia Investment Group Ltd

402 HK Equity

HKD

0.275

0.00

-17.91

305.3

238.46

0.38

0.16

7.75

Mongolia Growth Group

YAK CN Equity

CAD

0.700

0.00

-5.41

25.8

20.38

3.07

0.68

1.20

North Asia Resources Holdings Ltd

61 HK Equity

HKD

0.132

-1.49

-10.81

2.6

103.58

0.21

0.10

7.75

Guildford Coal Ltd

GUF AU Equity

AUD

0.037

12.12

2.78

13.9

27.94

0.11

0.03

1.22

Origo Partners PLC

OPP LN Equity

GBp

6.125

0.00

0.00

2,319.0

33.09

8.25

6.13

0.66

Entree Gold Inc

ETG CN Equity

CAD

0.195

-4.88

-4.88

18.2

23.94

0.52

0.18

1.20

Aspire Mining Ltd

AKM AU Equity

AUD

0.034

0.00

3.03

19.4

19.68

0.07

0.03

1.22

Prophecy Coal Corp

PCY CN Equity

CAD

0.060

0.00

20.00

5.5

12.62

0.11

0.04

1.20

FeOre Ltd

FEO AU Equity

AUD

0.026

0.00

0.00

1.2

11.32

0.08

0.02

1.22

Petro Matad Ltd

MATD LN Equity

GBp

2.250

0.00

5.88

0.0

9.52

9.50

2.00

0.66

Xanadu Mines Ltd

XAM AU Equity

AUD

0.100

0.00

0.00

8.8

29.90

0.18

0.03

1.22

Haranga Resources Ltd

HAR AU Equity

AUD

0.013

0.00

-7.14

0.2

3.66

0.09

0.01

1.22

Wolf Petroleum Ltd

WOF AU Equity

AUD

0.035

-12.50

-22.22

1.6

8.62

0.08

0.03

1.22

Manas Petroleum Corp

MNAP US Equity

USD

0.090

0.00

0.07

0.0

15.03

0.17

0.04

1.00

Khan Resources Inc.

KRI CN Equity

CAD

0.410

0.00

-15.46

20.9

23.33

0.49

0.21

1.20

East Asia Minerals Corp

EAS CN Equity

CAD

0.015

0.00

50.00

6.6

1.49

0.11

0.01

1.22

Erdene Resource Development Corp

ERD CN Equity

CAD

0.115

15.00

9.52

0.5

7.94

0.26

0.09

1.20

Modun Resources Ltd

MOU AU Equity

AUD

0.003

0.00

0.00

3.1

4.38

0.01

0.00

1.22

Kincora Copper Ltd

KCC CN Equity

CAD

0.025

0.00

0.00

0.4

6.47

0.09

0.02

1.20

General Mining Corp Ltd

GMM AU Equity

AUD

0.005

0.00

0.00

0.1

0.55

0.02

0.01

1.22

Draig Resources Ltd

DRG AU Equity

AUD

0.015

0.00

15.38

10.7

0.82

0.04

0.01

1.22

Newera Resouces Ltd

NRU AU Equity

AUD

0.002

0.00

0.00

0.5

2.01

0.01

0.00

1.22

Blina Minerals NL

BDI AU Equity

AUD

0.001

0.00

0.00

0.0

1.32

0.00

0.00

1.22

Name

Sym

Currency

Last

Turquoise Hill

TRQ US Equity

USD

Centerra Gold

CG CN Equity

CAD

MMC

975 HK Equity

Denison Mines Corp

30 day graphic

Source: Bloomberg

MONGOLIAN STOCK MARKET

16 January 2015

14

JSC's

TOP20 index

was

14,608.25

Company name

Trade volume

14,305

shares

worth

Change day

Trade value
'000

Last

Chg day

Chg day %

10.80

mln

MNT

-0.02%

YTD

-1.66%

Buy volume

Buy price

have

Sell price

been

Sell volume

DLG

1,456

4,150

2850

-400

-12.31%

2850

24

MIB

8,036

1,688

210.04

-10

-4.53%

11177

210

219

114

TCK

89

1,647

18500

-500

-2.63%

18500

191

MMX

283

1,005

3550

-50

-1.39%

17

3550

3600

171

GTL

101

960

9500

0.00%

402

9500

11000

483

TTL

111

477

4300

0.00%

172

4100

4300

95

MRX

3,446

303

88

0.00%

2000

85

90

8140

GOV

23

170

7400

0.00%

50

7350

7400

10

ADL

100

150

1500

0.00%

97

1500

1550

334

APU

38

143

3750

0.00%

100

3702

3750

SHG

10

58

5805

0.09%

18

5800

6500

328

JTB

550

48

88.02

-1

-1.10%

122

88

89

2201

HGN

32

99

4.21%

2665

95

99

5158

ETR

30

96

0.00%

1674

90

96

3931

traded.

19 January 2015

Investment Banking Division of Golomt Bank

The principal activities of Investment Banking Division constitute structuring, sourcing, negotiating and closing debt and equity financings as
well as the provision of incisive advisory services for private and public companies as well as institutions, public sector agencies and
authorities.
Our vision is to fuel the profitable
growth of our valued clients by providing the highest-quality investment banking services, and in so doing
0
create an environment which will lead to long term, mutually beneficial relationships. We strive to achieve these lasting relationships by
matching each client assignment with the collaborative expertise of the Banks team of seasoned banking and investment professionals.
Contact
Sukhbaatar Square, Ulaanbaatar 210620A, Mongolia
Fax: +976-70117676 /1402/
E-mail: ibd@golomtbank.com
Website: www.golomtbank.com

Disclaimer
2014.09
2702.1
This
document has
been prepared by the investment banking division of Golomt Bank for information purpose only. The views
expressed
views of the analyst and are subject to change based on market and other conditions and factors. The
2013.06are the7591
information provided does not constitute investment advice or other recommendations and should not be relied on as such. It
should not be considered a solicitation to buy or an offer to sell a security or to pursue any trading or investment strategy. All
13606.65
material, including information sourced from or attributed to Golomt Bank, has been obtained from sources believed to be reliable,
but its accuracy is not guaranteed. Past performance is no guarantee for future results. Accordingly you must independently
3250
determine, with your own advisors, the appropriateness for you of the
securities/transactions before investing or transacting.

91.076