MONTSAME National News Agency, in cooperation with MICC Mongolia International Capital Corporation, is delivering a weekly overview of domestic and international capital markets and economic developments to its readers.

Weekly Capital Market and Economic Review (September 7–13, 2026)

MONGOLIAN STOCK EXCHANGE

A total of 13.7 million securities worth MNT 6.81 billion were traded on the Mongolian Stock Exchange last week. By trading value, Khan Bank JSC, MGL Aqua JSC, Tavantolgoi JSC, APU JSC, and the Future Tech Innovation mutual fund were the most actively traded securities. One block trade was carried out during the period: 4.5 million shares of MGL Aqua JSC (MGLA) changed hands at MNT 276.18 apiece, worth a total of MNT 1.2 billion.

Overall market sentiment was weak last week, with the TOP-20 and FTI indices both declining. The MSE A index, however, edged higher, pointing to pockets of positive sentiment. The FTI index's 1.23% drop reflected relatively weak performance among small- and mid-cap stocks. Although the market's broader trend was slightly negative, some sectors and stocks retained room for growth, and investors continued to show steady interest in large, financially sound companies.

INDEX

UNIT

CHANGE

TOP 20 Index

63,054.98

-0.56%

MSE A Index

24,470.87

+0.17%

MSE B Index

15,254.90

-0.06%

FTI

1,053.71

-1.24%

COMMERCIAL BANKS' FOREIGN DEBT GROWS 2.6-FOLD IN 3 YEARS

The foreign debt of Mongolia's commercial banks reached USD 4.4 billion at the end of the second quarter of 2026, up USD 1.3 billion, or 41.2%, from a year earlier. Compared with the second quarter of 2023, commercial banks' foreign debt has grown 2.6-fold, now accounting for 11.4% of the country's total external debt.

By structure, foreign direct investment and intercompany lending account for the largest share of total external debt, at USD 17.6 billion, or 45.0%, followed by the government at USD 8.4 billion, or 21.5%, other sectors at USD 7.6 billion, or 19.3%, and commercial banks at USD 4.4 billion, or 11.4%. While banks' foreign debt rose 41.2%, the government's foreign debt fell 3.2%, foreign direct investment and intercompany lending fell 1.9%, and the Bank of Mongolia's foreign debt fell 29.5%.

Rising foreign funding gives banks more diversified sources of lending capital, but it also increases their exposure to exchange-rate movements, the cost of foreign financing, and refinancing risk. Going forward, attention should therefore be paid not only to the overall level of debt but also to what types of loans and investments this funding is being channeled into and to how soundly banks are managing their foreign-currency risk.

At the same time, the government's domestic debt rose 60.2% to reach MNT 2.0 trillion, reflecting the government's growing reliance on domestic sources to finance its spending.

TAVANTOLGOI OVERTAKES KHAN BANK IN MARKET VALUE

Valuations of major companies on the Mongolian Stock Exchange rose last week, lifting the number of companies with a market capitalization above MNT 3 trillion to two. Shares of Tavantolgoi JSC (TTL) climbed 37.7% over the week, pushing its market value to MNT 3.2 trillion and briefly overtaking Khan Bank JSC (KHAN) as the exchange's most valuable listed company. TTL's share price then fell 5.4% last Friday, while KHAN's rose 2.6%, returning Khan Bank to the top of the market-value rankings.

Three of the five companies valued above MNT 1 trillion are banks, underscoring that the banking and mining sectors remain the main drivers of Mongolia's equity market. At the same time, while two companies have now crossed the MNT 3 trillion threshold, none is valued near MNT 2 trillion, pointing to a clear valuation gap among the exchange's largest listed companies.

According to Mongolian Stock Exchange data, a total of MNT 872.2 billion in trading was carried out between September 7 and 11. Of this, coal accounted for MNT 699.4 billion, iron ore MNT 9.2 billion, and molybdenum concentrate MNT 56.8 billion, while securities trading made up the remaining MNT 106.8 billion—showing that trading in mining commodities, not only equities, contributes substantially to the exchange's overall activity.

EXPORTS RISE 57.2%, TRADE SURPLUS WIDENS

Mongolia's exports reached USD 14.4 billion in the first eight months of 2026, up USD 5.2 billion, or 57.2%, from the same period last year. As a result, the country's foreign trade balance posted a USD 6.0 billion surplus, 3.6 times larger than a year earlier.

Mining output drove the rise in exports: exports of copper ore and concentrate grew by USD 2.8 billion, and coal exports by USD 1.9 billion. Exports of unprocessed and semi-processed gold rose by USD 255.6 million and combed cashmere by USD 97.1 million, also contributing significantly to export revenue growth.

In terms of export structure, copper ore and concentrate accounted for 43.7% and coal for 37.0% of total exports, together making up more than 80% of the total, while gold accounted for 5.6%.

China remained Mongolia's main export market, receiving USD 13.3 billion worth of goods, or 92.7% of total exports. Of goods exported to China, copper ore and concentrate made up 47.1% and coal 40.7%.

These figures show that growth in the volume and price of copper ore, concentrate, and coal exports was the main driver of Mongolia's export growth in the first eight months of 2026, with mining remaining the principal source of export revenue.

Published Date:2026-09-15