💸 Mongolian shareholders | Copper Reserves | Car Import

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Happy Monday!

• Roses are red,

• Violets are blue

• Another hectic Monday begins,

• Here's what's new in Mongolia recently

Let’s start reading! 📰

💰 Over Half a Million Mongolians Now Own Stock

The number of Mongolian shareholders of publicly listed companies on the MSE (MSE) rose by 57.7 thousand and reached a total of 552.9 thousand this year.

Food stocks dominated!

In the first 8 months of 2023, shareholders of food companies such as APU (APU), Monos Food (MFC), and Tumen Shuvuut (TUM) have experienced significant increases. Additionally, shareholders of SUU (SUU) increased by 1,319 reaching a total of 9,300.

However, the rise in the number of shareholders is not correlated with the stock price of the food companies. For instance, APU's (APU) share price has declined by 17.2% this year, and SUU's (SUU) share price has also fallen by 17.6%.

 What happened?

Overall, among the 326 listed companies the number of shareholders increased for 71 companies, decreased for 68 companies, and remained constant for 186 companies. It's worth noting that over half of all companies experience a lack of liquidity for their shares.

• Troublemakers: Concerning companies witnessing a decline in shareholder numbers, several have encountered notable challenges. Notably, State Department Store (UID), CU Mongolia (CUMN), and TDB (TDB) grappled with significant issues this year. State Department Store incurred fines, CU Mongolia saw its losses surge by 2.7 times, and the TDB owner's case was transferred to the prosecutor. Regrettably, there has been a dearth of communication and clarification provided to investors concerning these matters.

• Banks: State Bank (SBM) and XacBank (XAC) witnessed an increase in shareholders, while the other three banks experienced a decrease. The biggest market-valued bank, Khan Bank (KHAN) lost it’s 3,300 shareholders during this period.

While only a limited number of stocks experience high turnover in the market, the interest in this realm is steadily growing each year. As more participants enter the arena and the demands on companies and exchanges intensify, the stock market is poised for growth and enhanced competitiveness.

DATA STORY: 🔝 Global Copper Reserves

Mongolia ranks 5th as its copper reserve globally. About the leaders, Chile leads the world in copper reserves, with 190 million tons as of last year. This is twice as much as Australia, which ranks second on the list with 95 million tons. Other countries with significant copper reserves include Peru 81 million tons and Russia 62 million tons.

📈 Imported Passenger Vehicles: Buckle Up for Higher Prices

In the first 8 months of this year, the price of imported passenger vehicles increased by 14.4% from a year ago and by 135.9% from the same period in 2020, reaching a total of $453.1 million.

Even it's expensive, we will buy it anyway

From 3 years ago, the average price of a passenger vehicle was $5,308, but now it reaches $9,667. Although the price of passenger vehicles has increased, it didn’t affect the quantity of imports dropping. In the first 8 months of 2023, the number of imported passenger vehicles fell by 1.7% from a year ago but grew by 29.6% from 3 years ago and reached 46.9 thousand.

From bicycle to Porsche

Furthermore, looking at the diversification of car imports, the number of passenger vehicle imports dropped by 21.7% from a year ago to 13,357. On the contrary, the price of special-purpose vehicles surged by 60.6%. It is the result of the activation of the mining industry.

• More: In addition, both the number and price of bicycle imports increased. Bicycle imports reached 21.8 thousand this year. It indicates that people fed up with city traffic seem to have increased the demand for bicycles. If the road improves, the number of bicyclists will increase. Also, it definitely causes traffic jams to decrease.

So what?

Why is the price of cars increasing, but the number of imports is not decreasing?

• Social status is essential: With urbanization, owning a car has become a status symbol and a measure of one's wealth and status in society. Also, the lack of public transport is a major loophole.

• Loan^3: Therefore, people who need to get a car with a loan, on the other hand, the bubble of lenders continues to grow. In this sense, in the first 7 months of this year, new car loans issued by commercial banks surged by 45.8% compared to a year ago and reached ₮47 billion.

Overally, The number demonstrates that now we need to sort out this problem by developing tax and tariff policies and public transport infrastructure. The method of limiting the cars by even and odd number order seems to increase the number of imported passenger vehicles.

🏃 QUICK STORIES

🔵 The Bank of Mongolia decided to maintain the interest rate at 13%. According to the Bank of Mongolia, inflation in Mongolia’s main trading partners slowed down and the trade turnover exceeded $15 billion. Also, the exchange rate of Tugrik against foreign currencies has been stable resulting in easing inflation.

🔵 Mongolian median monthly salary stands at ₮1.4 million as of 2Q 2023. Over the past 7 years, average nominal salaries have surged by a substantial 2.3 times, though real salary growth has been more modest, at 36.2%. Furthermore, the average monthly salary for men is ₮2.1 million, while for women, it averages ₮1.7 million.

🔵 Matter, a dating app, founded by Mongolians required by noii. The Matter is the audio-first dating platform in Los Angeles acquired by the Swiss company noii. This strategic move brings together both innovative companies dedicated to making dating more real, authentic, and efficient. The noii is a video-based dating platform.

🔵 The investing forum of Umnugobi is scheduled to take place on the 28th-29th of September. The registration will close in 8 days. The forum promises engaging discussions on a wide range of topics, including investment opportunities in Umnugobi, the economic landscape driven by mining activities, and the overall investment environment.

🔵 Monlogistics Holding’s IPO subscription value reached ₮11.3 billion and closed with 103.2% oversubscription. Also, 1,307 investors participated in the IPO.

⭐ TOP NEWS

• Take a look: The Frontier Fintech Summit 2023 Starts Today. (LemonPress)

• Article: What You Should Know About Before Investing in Mongolia. (MongoliaWeekly)

• Wonder: Why Are So Many Millennials Going to Mongolia? (NYTimes)

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Editor: E.Zolbayar
Writer: M.Khulan & Skh.Angirmaa

Disclaimer: The information Inside Mongolia provides is for educational and informational purposes only. It is not intended to be or constitute financial advice, trading advice, or any other advice. The decision whether to consider the information we provide is solely our readers' independent decision.