A clear market recovery continues for Mongolia’s stock exchange this week. The TOP-20 Index rose by 1.04 percent during April 27 to May 1. The MSE A Index gained 0.59 percent over the same period. The MSE B Index also climbed by 1.09 percent. Consequently, this market recovery continues across both large and small-cap segments. Traders exchanged 5.19 million securities units worth MNT 14.48 billion. Invescore NBFI JSC, Khan Bank, and Trade Development Bank led trading values. One block trade occurred during this weekly period.
The rising MSE B Index signals broadening growth beyond major stocks. Small-cap activity increased notably as buying pressure eased after the ex-dividend period. Nevertheless, this market recovery continues with some remaining limitations. Secondary market liquidity stays relatively constrained at present. Therefore, the uptrend still resembles a post-correction recovery phase. Future direction depends heavily on broader participation and improved liquidity. Investors should watch for more sustained buying across all sectors.
The Monetary Policy Council met on April 28 and changed foreign funding rules. Starting October 1, 2026, banks face a 25 percent reserve requirement. This applies to foreign currency bonds and loans with maturities between 360 days and three years. The council aims to reduce external vulnerability from rising foreign debt. Furthermore, the measure discourages short and medium-term external borrowing. It promotes more stable long-term funding structures instead. Stress tests show banks remain adequately capitalized despite major shocks. Thus, the market recovery continues alongside prudent macroprudential tightening.
The government approved a resolution on Erdenes Tavantolgoi shares on April 29. Authorities will organize the legal transfer of 1,072 shares from 132,203 deceased citizens. Heirs must establish inheritance rights through a notary first. After notarization, the Central Securities Depository will register the shares under heirs’ names. Heirs will also gain rights to accumulated dividends from previous years. The process expects to begin on June 1, 2026. Importantly, this resolution does not permit buying or selling shares. Restrictions on transferring shares remain until secondary market trading opens.
The Bank of Mongolia purchased 1,057.7 kg of precious metals in April 2026. Total purchases since the beginning of the year reached 4.3 tonnes. This marks a 30.7 percent increase compared to the same period last year. The Bayankhongor branch acquired 1,020.3 kg of that total. The Darkhan-Uul branch purchased 124.2 kg as well. The average gold purchase price stood at MNT 541,552 per gram in April. Elevated global gold prices continue to incentivize domestic supply activity.
Consequently, this market recovery continues with strong gold sector support. The increase in precious metal purchases boosts Mongolia’s foreign exchange reserves. Gold supply should remain stable in the near term. Investors holding bank stocks should monitor quarterly reports closely. The 25 percent requirement may raise foreign funding costs. Banks with high external financing could face pressure on lending rates. Overall, the Mongolian economy shows resilience and measured policy responses.
