2014-12-16

Daily Report
Report
Daily
|
NEWS & ANALYSIS

16 December 2014

2014.12.16
Performance

Index

Last

Country

MSE - Top20
DJIA
S&P 500
Nasdaq
S&P/TSX comp
FTSE 100
S&P/ASX 200
Hang Seng
Bloomberg/asia.pac

Change %
(Day)

14,679.77
17,180.84
1,989.63
4,605.16
13,705.14
6,182.72
5,166.40
23,027.85
176.71

MN
US
US
US
CN
UK
US
HK
ASIA

YTD change %

-2.26
-0.58
-0.63
-1.04
-0.19
-1.87
-0.38
-0.95
-0.48

-9.95
3.64
7.64
10.26
0.61
-8.39
-3.47
-1.20
5.10

COMMODITY PRICES

Performance

Last
USD

Commodity
Prime Coking Coal /Tianjin
Zinc Spot /LME
Iron Ore 58%/Tianjin
Copper Spot /LME
Oil
Gold Spot /LME
Silver Spot /LME

Change %
(Day)

138.86
2,158.75
73.13
6,447.50
55.54
1,197.26
16.20

YTD change %

0.00
-0.91

-26.50
5.15
-46.14
-12.59
-43.57
-0.36
-16.79

-1.45
-0.66
0.34
0.23

MONGOLIAN RELATED NEWS

MINING SECTOR PRODUCTION INCREASES
The industrial production index (2010=100 seasonally adjusted and experimental estimation) in the
first 11 months of 2014 decreased by 9.5 percent compared to the same period of last year, by 3.4
percent from the end of the previous year and by 6.0 percent from the previous month. The mining
products such as molybdenum with concentrate, gold, iron ore, copper concentrate, crude oil,
fluorspar concentrate increased 5.6-60.8 percent in the mining and quarrying sectors, while the
production of products such as bakery products, cigarettes, beer, metal foundries, milk, knitted
goods, cake, buuz, dumpling, soft drinks, bread, vacuum windows and doors, sausage food, cement,
sawn wood, horse meat rose by 1.2 percent to 6.4 times in the manufacturing sector against the
same period of 2013.
http://en.montsame.mn/economics/item/9508-mining-sector-production-increases
Young people between 15 and 34 make up 38.5 percent of the population in Mongolia.
Recent studies show that 228.5 thousand (24.1 percent) of the nation's youth are unemployed. While
125.9 thousand young people work in animal husbandry, they represent only 13.1 percent of the
younger generation. The Government of Mongolia and Ministry for Population Development and
Social Welfare have created the Youth Department, for the first time in the past two decades, to be in
charge of youth issues and focusing on youth development. In the scope of youth development
issues, the government will put greater effort towards meeting with non-governmental youth
organizations to discuss youth issues and consider incorporating them into government programs.
Through the Youth Development Project with support from the Swiss Agency for Development and
Cooperation (SDC), the Grand Duchy of Luxembourg, and the United Nations Population Fund
(UNFPA), the Government of Mongolia has established Youth Development Centers in nine
provinces in Mongolia.
http://english.news.mn/content/198547.shtml

MONGOLIAN ECONOMIC INDICATORS

Indicator
RGDP /bln. MNT/
NGDP /bln.MNT/
Inflation
Foreign reserve /mln. USD/
Policy rate

Date

Last

2014.07
2014.07
2014.10
2014.09
July 31 ,2014

9,857
6,635
1,542.7
12.00

Last

Yield

YoY change
%
5.3
14.6
12.1
-42.4

DEBT MARKET

Amt.
issued mln
USD
DBM bond - 5.75
580
MMC bond - 8.875
600
Mongol 2018 - 4.125
500
Mongol 2022 - 5.125
1,000
TDBM 2015 - 8.5
300
TDBM 2015 - 12.5
25
TDBM 2017 - 10 dim sum
115
DBM bond - 1.52 sam.
290
Bonds - Coupon

98.00
67.50
94.20
88.50
99.88
99.88
97.78
103.67

Maturity date

6.713
29.390
5.979
6.863
8.642
12.320
10.957
1.070

3/21/2017
3/29/2017
1/5/2018
12/5/2022
9/20/2015
11/17/2015
1/21/2017
12/25/2023

INDICES CHANGE
3.15

-1.73

Nikkei 225

-2.28

DAX

FTSE 100

-1.20

-0.95

-3.47

-0.38

S&P/ASX 200

-8.39

-1.87

S&P/TSX comp

0.61

-0.19

10.26

-1.04

Nasdaq

3.64

-0.58

DJIA

GLOBAL NEWS
Asian Stocks Extend Drop on Oil Slump While Ruble Rallies
Asian stocks fell, with the regional index extending losses at a two-month low as oils slump stoked
concern over the global economy. The ruble rallied as Russias central bank raised interest rates by
the most since 1998. The MSCI Asia Pacific Index (MXAP) slipped 0.5 percent by 10:10 a.m. in
Tokyo, falling for a second day and trading at its lowest level since Oct. 17. Japans Topix index
dropped 1.4 percent while Standard & Poors 500 Index futures added 0.3 percent after a 0.6 percent
drop in the U.S. gauge. Oil in New York fell for a fifth straight day, sinking 0.6 percent. The ruble
jumped 8.5 percent versus the dollar, according to offshore prices compiled by Bloomberg. Gold rose
0.4 percent. Energy companies are driving a retreat in global stocks this year as an increase in crude
output coincides with a drop in demand amid slowing growth from Europe to China. The Bank of
Russia raised its key rate by 6.5 percentage points as oils slump pushes the country, the worlds
biggest energy exporter, toward a recession and sends the ruble to a record low. Manufacturing
indexes for China and Japan are due today, before the Federal Reserve starts its two-day monetary
policy review.
http://www.bloomberg.com/news/2014-12-15/asian-stock-index-futures-fall-while-ruble-forwardsrally.html

-9.95

MSE - Top20 -2.26

Change % (Day)

Volume
YTD %

MSE TOP 5 MOST TRADED

Trade value '000

JTB

MONGOLIA AND RIO TINTO TO SET UP WORKING GROUP

The government of Mongolia and the Rio Tinto Group have concurred to establish a working group in
near future with an aim to develop a calculating system and registration of mineral royalties to be
accorded with income tax and other tax levy and records. It was said at a meeting between the
Minister of Finance J.Erdenebat and the Rio Tinto Group CEO of Copper Mr Jean-Sebastien Jacques
last Friday. At the meeting, the sides discussed a present situation of the Oyu Tolgoi LLC, an export
of copper concentrate to Japan, and economic benefits from underground mine.
http://en.montsame.mn/politics/item/9501-mongolia-and-rio-tinto-to-set-up-working-group

Thousands

Hang Seng

-2.72

Development Bank of Mongolia Increases Loan to $300m From $200m

Sole MLAB Credit Suisse is joined by 3 other banks; loan signed last week in Hong Kong.
NOTE: Development Bank of Mongolia to Increase $200m Loan
Banks can join either or both tranches
Information from person familiar with the matter, who is not authorized to speak publicly and asked
not to be identified
Bloomberg Terminal

MSETOP Index

16,000

20,000

14,000

18,000
16,000

12,000

14,000

10,000

12,000

8,000

10,000

6,000

8,000

163

MMX

6,000

4,000

-1.34%

214

4,000

2,000
December-14

October-14

July-14

August-14

May-14

June-14

April-14

March-14

January-14

October-13

July-13

August-13

May-13

November-14

0%

September-14

-5%

February-14

-10%

June-13

-8.74%
600

December-13

400

November-13

200

September-13

April-13

410

0
January-13

TTL

2,000

0
March-13

0.00%

332

February-13

BAN

16 December 2014

MONGOLIAN RELATED COMPANIES

Trade value 000 Market cap mln
USD
USD/

52w high

52w low

Currency
cross

-14.85

11,517.3

5,654.56

4.36

2.75

1.00

14.12

6,397.0

999.62

6.90

3.16

1.17

0.00

-48.60

841.0

430.08

0.84

0.33

7.75

1.080

-2.70

-16.28

608.2

468.60

1.95

1.02

1.17

HKD

0.290

0.00

-40.82

9.3

141.13

0.55

0.28

7.75

276 HK Equity

HKD

0.435

0.00

-55.25

159.7

94.77

1.06

0.39

7.75

SouthGobi Resources

1878 HK Equity

HKD

3.820

0.00

-44.48

10.9

107.78

8.06

3.60

7.75

Central Asia Metals PLC

CAML LN Equity

GBp

169.500

-0.51

20.21

4,877.0

295.04

190.00

141.00

0.64

Mongolia Investment Group Ltd

402 HK Equity

HKD

0.222

0.00

-23.45

950.7

191.89

0.38

0.16

7.75

Mongolia Growth Group

YAK CN Equity

CAD

0.840

-22.94

-63.00

192.2

25.11

3.07

0.84

1.17

North Asia Resources Holdings Ltd

61 HK Equity

HKD

0.149

0.00

-18.13

27.2

115.98

0.21

0.10

7.75

Guildford Coal Ltd

GUF AU Equity

AUD

0.038

0.00

-54.14

2.5

28.64

0.11

0.04

1.22

Origo Partners PLC

OPP LN Equity

GBp

6.375

-8.11

-13.56

2,577.3

35.55

8.25

6.38

0.64

Entree Gold Inc

ETG CN Equity

CAD

0.230

4.55

-25.81

14.5

29.00

0.52

0.18

1.17

Aspire Mining Ltd

AKM AU Equity

AUD

0.035

2.94

-37.50

6.6

20.22

0.07

0.03

1.22

Prophecy Coal Corp

PCY CN Equity

CAD

0.055

-8.33

-31.25

17.7

11.88

0.11

0.04

1.17

FeOre Ltd

FEO AU Equity

AUD

0.026

0.00

-36.59

1.2

11.30

0.08

0.02

1.22

Petro Matad Ltd

MATD LN Equity

GBp

2.250

0.00

-40.00

2,309.1

9.83

11.50

2.00

0.64

Xanadu Mines Ltd

XAM AU Equity

AUD

0.100

-13.04

100.00

9.0

30.67

0.18

0.03

1.22

Haranga Resources Ltd

HAR AU Equity

AUD

0.012

0.00

-80.65

4.9

2.58

0.09

0.01

1.22

Wolf Petroleum Ltd

WOF AU Equity

AUD

0.044

0.00

-37.14

19.9

9.75

0.08

0.03

1.22

Manas Petroleum Corp

MNAP US Equity

USD

0.115

0.09

67.88

24.8

19.20

0.17

0.04

1.00

Khan Resources Inc.

KRI CN Equity

CAD

0.380

0.00

33.33

1.3

22.20

0.45

0.20

1.17

Voyager Resources Ltd

VOR AU Equity

AUD

0.002

0.00

#N/A N/A

0.1

#VALUE!

#N/A N/A

#N/A N/A

1.22

East Asia Minerals Corp

EAS CN Equity

CAD

0.015

0.00

-62.50

0.3

1.36

0.11

0.01

1.22

Erdene Resource Development Corp

ERD CN Equity

CAD

0.100

17.65

-28.57

4.9

7.06

0.26

0.09

1.17

Modun Resources Ltd

MOU AU Equity

AUD

0.003

0.00

-25.00

7.4

4.37

0.01

0.00

1.22

Kincora Copper Ltd

KCC CN Equity

CAD

0.020

-20.00

-20.00

7.9

5.31

0.09

0.02

1.17

General Mining Corp Ltd

GMM AU Equity

AUD

0.007

0.00

-58.82

0.1

0.77

0.02

0.01

1.22

Draig Resources Ltd

DRG AU Equity

AUD

0.014

0.00

-60.00

0.0

0.76

0.04

0.01

1.22

Newera Resouces Ltd

NRU AU Equity

AUD

0.001

0.00

-83.33

17.2

1.00

0.01

0.00

1.22

Blina Minerals NL

BDI AU Equity

AUD

0.001

0.00

0.00

4.9

1.32

0.00

0.00

1.22

30 day graphic

Name

Sym

Currency

Last

Chg day %

Turquoise Hill

TRQ US Equity

USD

2.810

-6.95

Centerra Gold

CG CN Equity

CAD

4.930

-9.21

MMC

975 HK Equity

HKD

0.360

Denison Mines Corp

DML CN Equity

CAD

Winsway Coking Coal Holdings Ltd

1733 HK Equity

MoEnCo

YTD %

Source: Bloomberg
MONGOLIAN STOCK MARKET
15 December 2014

20

JSC's

TOP20 index

was

14,679.77

134,601

shares

worth

Change day

Company name

Trade volume

Trade value
'000

Last

SOR

123,839

200,000

1615

APU

8,000

30,008

TTL

102

410

BAN

102

MMX

231.49

mln

MNT

-2.26%

YTD

-9.95%

have

Chg day

Chg day %

Buy
volume

Buy price Sell price

Sell volume

3751

-47

-1.24%

760

3750

4200

20

4018

-385

-8.74%

10

4000

4300

100

332

3250

0.00%

2765

3250

363.00

57

214

3749

-51

-1.34%

53

16-Feb-10 3750

93

JTB

1,938

163

84

0.00%

254

84

85

1484

GOV

17

122

7,200

-150

-2.04%

20

7020

7200

UID

149

86

579

0.00%

371

562

599

50

SHG

11

65

5880

-420

-6.67%

10

5805

6200

HRM

100

17

170

0.00%

102

161

170

9600

HGN

145

15

100

0.00%

230

96

100

2800

SHV

10

5150

0.00%

10

4500

5150

35

RMC

100

10

100

0.00%

200

95

100

19355

EER

2,699

-1

-0.04%

695

2350

2699

17

BEU

3,579

0.00%

3045

3579

HBO

10

594

-1

-0.17%

135

510

590

50

MDR

10

495

20

4.21%

70

405

495

102

ADL

1670

0.00%

20

1551

1670

253.00

NKT

10

319

0.00%

172

280

319

30

MCH

1,374

134

10.81%

10

1241

1374

18

been

traded.

16 December 2014

Investment Banking Division of Golomt Bank

The principal activities of Investment Banking Division constitute structuring, sourcing, negotiating and closing debt and equity
financings as well as the provision of incisive advisory services for private and public companies as well as institutions, public sector
agencies and authorities.
-2
Our vision is to fuel the profitable
growth of our valued clients by providing the highest-quality investment banking services, and in so
doing create an environment which will lead to long term, mutually beneficial relationships. We strive to achieve these lasting
relationships by matching each client assignment with the collaborative expertise of the Banks team of seasoned banking and
investment professionals.
Contact
Sukhbaatar Square, Ulaanbaatar 210620A, Mongolia
Fax: +976-70117676 /1402/
E-mail: ibd@golomtbank.com
Website: www.golomtbank.com

Disclaimer
2014.09
2702.1
This
document has
been prepared by the investment banking division of Golomt Bank for information purpose only. The views
2013.06are the7591
expressed
views of the analyst and are subject to change based on market and other conditions and factors. The
information provided does not constitute investment advice or other recommendations and should not be relied on as such. It
should
not be considered a solicitation to buy or an offer to sell a security or to pursue any trading or investment strategy. All
13606.65
material, including information sourced from or attributed to Golomt Bank, has been obtained from sources believed to be
reliable, but its accuracy is not guaranteed. Past performance is no guarantee for future results. Accordingly you must
3250 for you of the securities/transactions before investing
independently determine, with your own advisors, the appropriateness
or transacting.