Mongolian Stock Market Main Indices Show Positive Movement

Ulaanbaatar, September 21, 2026 /MONTSAME/. 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 14-20, 2026)

MONGOLIAN STOCK EXCHANGE

Last week, 5.9 million securities worth a total of MNT 4.3 billion were traded on the Mongolian Stock Exchange (MSE). By trading value, Khan Bank JSC, Golomt Bank JSC, Ard Insurance JSC, Ard Financial Group JSC, and Mongolian Stock Exchange JSC were the most active stocks. During this period, one block trade was executed. Specifically:

• Ard Insurance JSC (AIC) traded 492,000 shares at MNT 680 per share, totaling MNT 334.9 million.

The main indices of the Mongolian stock market moved higher, supporting the market's growth outlook. The TOP-20 Index rose by 2.93% to 64,900.55 points, reflecting active investor participation and the dominance of price increases in large-cap stocks. The MSE-A Index rose 2.17% to 25,001.81 points, indicating growing demand for shares of highly valued companies. Meanwhile, the MSE-B Index grew by 0.44%, showing relatively stable movement in the shares of Tier 2 and Tier 3 companies. Conversely, the FTI Index decreased by 0.31% to 1,050.41 points. Overall, the capital market trended upward during the reporting week, and investor expectations remained positive, with major companies in the TOP-20 and MSE-A indices serving as the main market drivers.

BANK OF MONGOLIA MAINTAINS POLICY RATE AT 12.5%

The Monetary Policy Committee of the Bank of Mongolia decided to keep the policy rate unchanged at 12.5% during its meetings on September 16–17, 2026.

In August 2026, the nationwide annual inflation rate stood at 12.5%, and 11.6% in Ulaanbaatar, decreasing by 0.5 and 1.4 percentage points, respectively, from the previous month. The slowdown in inflation was mainly driven by an increased supply of meat and vegetables, which reduced food price growth.

Mongolia's economy grew by 7.7% in the first half of 2026, with the mining and transportation sectors serving as the primary contributors. Activity in the mining and transportation sectors is expected to be maintained, while non-mining sector growth is projected to increase gradually.

In the external environment, oil and energy prices have risen due to the conflict in the Middle East, and the risk of increased inflationary pressure remains. However, gold and copper prices remain at high levels, positively impacting terms of trade and foreign exchange reserves.

The Bank of Mongolia expects inflation to slow down starting in the second quarter of 2027 and approach the upper interval of the target level by the end of 2026. However, the state budget amendment for this year and the approval process for the 2027 budget remain among the main risks affecting the future inflation outlook.

Therefore, the Monetary Policy Committee will implement subsequent policy actions in a timely manner, taking into account changes in inflation and the economic situation.

“MONGOLIAN CAPITAL MARKET 2.0” PROGRAM ANNOUNCED

On September 15, the London Stock Exchange Group (LSEG), the Mongolian Stock Exchange (MSE), and the Central Securities Depository (CSD) jointly announced the implementation of the “Mongolian Capital Market 2.0” program. The program is a long-term cooperation plan aimed at upgrading the technology and infrastructure of the Mongolian capital market and strengthening its integration with international markets.

Under the program, in addition to developing trading, settlement, and depository systems in line with international standards, focus will be placed on dual listings of Mongolian companies and increasing foreign investment. This is expected to expand opportunities for domestic companies to raise funds in international capital markets and increase investor participation.

Analysts believe this initiative is a crucial step in taking the Mongolian capital market to the next level, enhancing market transparency, liquidity, and international competitiveness.

BANK LOAN CRITERIA SLIGHTLY EASED, LOAN DEMAND INCREASES

The Bank of Mongolia released its “Bank Lending Survey” report for the second quarter of 2026 last week. This qualitative survey identifies the supply and demand for bank loans and the reasons for their changes, assessing the current and future outlook of the credit market.

In Q2 2026, banks slightly eased their loan criteria for enterprises and citizens. Corporate loan conditions were also slightly eased, while there were no significant changes to retail loan conditions.

In terms of loan demand, corporate demand increased with an index value of 0.34, and retail demand grew with an index of 0.22. The rise in corporate loan demand was primarily driven by the need for fixed and working capital financing, whereas the increase in retail demand was mainly influenced by improved consumer confidence and a growing need to purchase durable goods and fulfill other financial requirements.

In the coming quarter, banks are expected to slightly increase the loan supply for both enterprises and citizens. The corporate loan supply index stood at 0.19, and the retail index was also 0.19, with an expectation to predominantly increase the supply of retail salary loans.

On the other hand, corporate and retail loan conditions are generally expected to remain unchanged in the next quarter, while the prevailing expectation is a slight easing of corporate loan criteria alongside the maintenance of current retail loan criteria.