Weekly Capital Market and Economic Review
(2026.06.15–2026.06.21)

 
MONGOLIAN STOCK EXCHANGE

A total of 5.3 million securities worth 7.7 billion MNT were traded on the Mongolian Stock Exchange last week. By trading value, Innovation Investment JSC, Khan Bank JSC, Trade and Development Bank, Mongolian Stock Exchange JSC, and Ard Financial Group JSC led the market. During this period, one block trade was executed. Specifically:

• 2.4 million securities of Innovation Investment JSC (QPAY) were traded at a unit price of 271 MNT, totaling 650.4 million MNT.

On the last trading day of the week, Mongolian Stock Exchange indices closed with mixed performance. The TOP-20 index fell by 0.09% to 51,371.42 points, reflecting profit-taking in large-cap stocks. Meanwhile, the MSE A index rose by 0.48%, and the MSE B index increased by 0.11%, indicating continued buying interest in mid- and small-cap stocks. The FTI index also rose by 1.28% to 1,057.61 points, reflecting positive movements in investment fund unit prices.

Market movements suggest that investors have begun selectively reallocating capital from large-cap stocks into mid- and small-cap companies and investment fund products. Overall, index performance indicates a relatively stable market environment dominated not by broad-based selling, but by rotation between sectors and instruments.

SECURITIES MARKET TRANSACTIONS INCREASE 2.4 TIMES, PRIMARY MARKET LEADS GROWTH

According to preliminary data from the National Statistics Office, total securities market transactions in Mongolia reached 797.5 billion MNT in the first five months of 2026, increasing by 465.1 billion MNT or 2.4 times compared to the same period of the previous year. The main driver of this growth was primary market financing, which accounted for around 70% of total transactions. 

Key indicators:

• Total securities transactions: 797.5 billion MNT (+465.1 billion MNT, 2.4x increase)
• Primary market transactions: 551.6 billion MNT (69.2% of total)
• Secondary market transactions: 245.9 billion MNT (+0.3%)
• TOP-20 index: 50,866.82 points, up by 1,293.4 points year-on-year

In terms of structure, corporate bonds accounted for 54.7% of total transactions, making them the largest component, followed by asset-backed securities at 16.3%, corporate equities at 15.2%, and government bonds at 13.6%. This indicates that investors continue to favor fixed-income instruments, while companies remain active in raising long-term financing through the capital market.

The number of traded securities fell to 235.4 million units, down 47.8% year-on-year. Secondary market trading volume also declined by 48.6%, indicating that overall transaction growth has been driven more by high-value primary market financing than by trading activity.

As of May 2026, total market capitalization reached 13.4 trillion MNT, up 9.1% year-on-year, while the TOP-20 index increased by 149.5 points from the previous month, indicating stable growth in major stock valuations. 

From a capital market perspective, the growth in transactions reflects the increasing role of the capital market in financing the economy. However, since most growth is driven by the primary market, secondary market liquidity and trading activity remain weak, indicating the need to expand investor participation and deepen market development.
 

TUGRUG WEAKENS SLIGHTLY AGAINST MAJOR CURRENCIES DESPITE RELATIVE STABILITY

According to data from the National Statistics Office and the Bank of Mongolia, the tugrik showed minor changes against major foreign currencies as of May 2026. The average USD exchange rate reached 3,576.06 MNT, weakening by 3.30 MNT year-on-year and by 2.55 MNT month-on-month. The tugrik also weakened against the yuan and ruble, while it slightly strengthened against the euro compared to the previous month.

Key indicators:

USD: 1 USD = 3,576.06 MNT (−3.30 MNT YoY, −2.55 MNT MoM)

EUR: 1 EUR = 4,175.46 MNT (−144.29 MNT YoY, +1.35 MNT MoM)

CNY: 1 CNY = 525.91 MNT (−30.82 MNT YoY, −3.40 MNT MoM)

RUB: 1 RUB = 48.97 MNT (−4.65 MNT YoY, −2.38 MNT MoM)

Exchange rate movements show that while the tugrik continues to weaken, the magnitude of change remains relatively small. This indicates that there have been no sharp fluctuations in the foreign exchange market and that the exchange rate has remained at a stable level.

On the other hand, exchange rate movements remain a factor directly affecting import costs, corporate foreign payments, and household consumption. In particular, depreciation against the yuan and US dollar may increase import costs, while the slight strengthening of the euro may have a positive effect on transactions linked to European markets.

At present, exchange rate movements remain stable, but the outlook will largely depend on export revenues, foreign currency inflows, and global financial market conditions.
 

MONGOLIA RANKED 67TH IN GLOBAL COMPETITIVENESS INDEX

In the “World Competitiveness Yearbook 2026” published by the International Institute for Management Development (IMD) in Lausanne, Switzerland, Mongolia ranked 67th out of 70 countries with a score of 39.02. Last year, Mongolia ranked 65th out of 69 countries, meaning its position declined by two places this year.

Key indicators:

• Mongolia ranked 67th out of 70 countries with a score of 39.02
• Economic performance and government efficiency indicators declined, while business efficiency improved
• Inflation, policy instability, infrastructure, and access to financing were identified as key negative factors affecting competitiveness
• Foreign direct investment levels, goods export performance, and the share of educated women remain Mongolia’s relative strengths

The report noted that Mongolia’s economic resilience is weak and its services export competitiveness is insufficient. It also highlighted high inflation, debt pressure, skilled labor shortages, and logistics and infrastructure constraints as key challenges for the business environment.

On the other hand, increased investment in the education sector and improvements in labor force and population growth were assessed as positive long-term factors. The share of foreign direct investment in GDP and goods export performance remain relatively strong by international standards.

From a capital market perspective, competitiveness rankings are an important indicator for foreign investors in assessing Mongolia’s business environment, institutional quality, and economic stability. The improvement in business efficiency reflects a recovery in private sector activity; however, inflation, policy instability, and infrastructure weaknesses remain key challenges for long-term investment flows.

Urin.N

Published Date:2026-06-25