Stock market value reaches historic high level

Authorities of the Financial Regulatory Commission (FRC) reported on February 26 that all indicators of stock market had growth in 2017.

Specifically, a total stock market value reached MNT 2.4 trillion in 2017 which showed the highest indication in its history. In 2016, the stock market value was MNT 1.4 trillion and it was raised by 65 percent within one year period. Thus, the stock market equals to 9 percent of Gross domestic product (GDP). Newly issued securities were traded well showing that market demand has increased in the sector.

As of 2017, a total asset of savings and credit cooperatives, non-bank financial institutions (NBFI) and insurance field amounted to MNT 1.4 trillion. It was went up by 23 percent compared to 2016 and makes up 5 percent of the GDP.

A total capital of insurance was MNT 244.7 billion as of the end of 2017, showing 17.4 percent rise than the previous year. A total premium income went up by 26.1 percent, insurance compensation by 31 percent and net profit raised by 15.7 percent compared to 2016.

Amount of total capital of non-bank financial sector reached MNT 969.2 billion in 2017, equalling to 3.6 percent of GDP. As a result of raising threshold of NBFI share capital, loan supply went up and monthly weighted interest rate decreased to 3.4 percent from 4 percent. FRC considers the interest rate can be declined down to 2.1 percent by 2020.

Moreover, savings and credit cooperatives’ capital totals MNT 151.3 billion, having 55.624 members and a total net profit of MNT 5.5 billion. It is the highest growth since 2012 and also amount of total credit of the sector reached MNT 105 billion.


March 1, 2018
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