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Hello from Mongolia! Bet you know what’s happening in Mongolian politics. The country could have the heaviest-headed PM in the world. But time is running out. This week, parliament will decide whether to retain him in the seat or remove him from it. Will Mongolia’s parliament choose stability or finally say enough is enough? 🤔👀

Today’s highlights in 3 sentences…

• 🚫 Vape Ban Alert

• 📉 Stock Market in Transition

• 💸 Cost of Living Soars

No Time to Waste. Let’s Get Started! 🦘

MARKET

MNG: Parliament approves bill outlawing online gambling. It’s now officially illegal in Mongolia.

EAEU: Partnership agreements between the Eurasian Economic Union, the United Arab Emirates, and Mongolia will be signed in Minsk in late June.

BILL: Mongolia moves to ban flavored and scented vapes.

🥶⛓️‍💥 From Boom to Pause: Mongolia’s Stock Market in Transition

While political uncertainty dominates headlines, a quieter crisis is unfolding in the background. Mongolia’s once-resilient stock market is slipping. After nearly a decade of steady gains, market value is now in retreat.

🧐 Will the Trend Break?

Since 2004, Mongolia’s stock market has grown by an average of 54.4% annually. Over the past 20 years, it declined in only five of them and has enjoyed uninterrupted growth since 2016. But that upward trajectory is now showing signs of strain.

• 📉 What Changed? In January 2024, the market capitalization reached ₮13 trillion. Since then, it has steadily declined, shrinking by ₮914 billion to hover around ₮12 trillion, or approximately $3.4 billion.  

🔻 Trading Activity Weakens

A major factor behind the decline is reduced trading activity. In March, the market hit its lowest point for the year. Only 109 public companies saw trading activity, a drop of 11% from February. Secondary market trading volume also fell by 12.3%, indicating broad investor hesitation.

• 🚨 Too Much Weight on Too Few Players: The market’s vulnerability is further amplified by overconcentration. Currently, 79.5% of market capitalization is held by the TOP-20 companies, with 54.8% concentrated in just the TOP-5. This skew means market value is heavily influenced by a small group of players, increasing volatility.

• 📌 Billions in Value Lost: Two of the most influential public companies, Khan Bank (KHAN) and Tavan Tolgoi (TTL), have seen their valuations fall by 7.5% and 14.9%, respectively, since the beginning of the year. These losses are echoed across the board, with most companies experiencing value erosion.

⁇ Government Intervention: A Real Fix?

Originally intended to stimulate market activity, the government resumed domestic securities trading last month. A similar move 10 years ago successfully boosted daily trading volumes from ₮10–₮20 million to ₮1.5 billion. However, it’s too early to say whether the current initiative will deliver comparable results.

• 📉 An IPO Chill and Fading Foreign Interest: Adding to the pressure, the IPO pipeline has cooled, and the initial excitement around open-ended bonds has diminished. At the same time, foreign investors now account for just 1%–2% of overall trading, a troubling sign for diversification and long-term growth.

Finally… If Mongolia is to reinvigorate its capital markets, it must create a stronger investment environment with well-designed incentives. That includes boosting transparency, encouraging innovation, and widening investor participation. Only then can the market reclaim its growth momentum—and possibly avoid ending a nine-year winning streak.

⭐ Selected for you

ECONOMY & BUSINESS

• Orbminco Begins Bronze Fox Geophysical Surveying. (Mining.AU)

• JSW Steel Keen to Source Coking Coal from Mongolia But Sees Logistics as a Challenge. (DailyExcelsior)

• AmCham Leadership in Shaping Mongolia’s Investment Climate: Ambassador’s Remarks. (U.S.Embassy)

• Mongolia’s Economy Gains Most When the Government Invests in Infrastructure. (Devdiscourse) 

POLITICS

• Mongolian PM's Chances of Survival Seen as Slim as He Heads to a Vote of Confidence. (BNEIntellinews)   

• Partnership with Mongolia to Develop Tourism HR, Lower CO2. (Korea.net)

• Public Service Kiosks to Be Installed in All Soums of Mongolia. (Montsame)

• Will Citizens Have to Pay for Social Insurance Deficit? (UBPost) 

CULTURE & LIFESTYLE

• Asia's Other "Great Wall": Very Unexpected Finds Unearthed At Mongolia's Medieval Wall System. (IFLScience)

• Dalefield Captain off to Mongolia with New Zealand. (ThePost)

👀 The Yearly Diet No One Asked For: Your Wallet

How much do you think you can buy at the store for ₮25,000, or about $6.5?

🫙 A Wallet That Gets Emptier Year by Year

5 years ago, ₮25,000 could buy 1 loaf of bread, 1 kg of bone-in beef, 1 liter of milk, 1 bottle of vegetable oil, and 1 kg each of onions and garlic. Today, that same basket will set you back ₮49,000, almost double the price after just 5 winters and springs. Inflation sure knows how to stretch its legs.

• 🧄 Is garlic turning into a luxury? The product with the sharpest price increase over the past 5 years is garlic imported from China, with consumer prices soaring by 145.5%, now averaging ₮10,900 per bulb. Onion prices rose 140.9% per kg.

• 📌 The big picture: Of 35 consumer goods and services tracked during this period, prices for 34 items increased. The only exception was imported cigarettes, which fell by 1.1%, although domestic cigarette prices climbed 18.3%. On average, prices rose by 74.5%.

• 🔖 Nothing stays the same: Prices for everything from haircuts, grocery meals, alcohol and beer, to heating fuel have risen. Even bus fares, which had been stable for years, finally increased.

⌛️ Overall picture

Inflation averaged 8.6% annually over the past 5 years. What could be bought for ₮1,000 then now costs ₮1,745. Meanwhile, if you had simply held on to that ₮1,000 in cash, its real purchasing power today would be just ₮573.

Overall… The decline in purchasing power for ₮25,000 is more than just numbers. It’s a real measure of quality of life. Despite nominal wage increases, questions remain about tax burdens and wage distribution. Is it any surprise that 2.3 million people now have loans from non-bank financial institutions? This reflects a deep, systemic insufficiency.

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Publisher: Ts.Ankhbayar
Writer: M.Khulan
Graphics by: Ts.Tselmeg

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.