2015-01-10

Daily Report
Report
Daily
|
NEWS & ANALYSIS

10 January 2015

2015.01.10
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)

14,532.43
17,737.37
2,044.81
4,704.07
14,384.92
6,501.14
5,465.57
23,919.95
184.75

MN
US
US
US
CN
UK
US
HK
ASIA

YTD change %

-0.69
-0.95
-0.84
-0.68
-0.50
-1.05
1.56
0.35
0.42

-2.17
-0.48
-0.68
-0.68
-1.69
-0.99
1.01
1.33
0.37

MONGOLIAN RELATED NEWS

SECONDARY MARKET TRADING OF GOVERNMENT SECURITIES WILL COMMENCE ON 19
JANUARY 2015
Primary market trading of government securities started from 4 November 2014; and since then, MNT
36.1 billion traded successfully through MSEs 10 trading sessions. Secondary market trading of
Government securities will commence on 19 January 2015, which coincidences with 24th anniversary
of Mongolia Stock Market, due to the finished pilot trading of government securities on MIT system
with cooperation of the Mongolian Stock Exchange and Mongolian Securities Clearing House and
Central Depository. By commencing secondary market trading of government securities, liquidity and
assess will be increased, and possibilities of buying government securities on daily basis, settlement
and buying back of government securities before its maturity date will be concurred. Benchmark and
yield curve of Mongolian capital market will be settled in competitive real situation and new data
which shows economic trend will be established.
http://mse.mn/news/show/id/1402

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)

136.90
2,145.50
68.80
6,166.50
48.36
1,223.25
16.51

YTD change %

0.00
-0.13

-1.16
-0.99
-49.33
-3.16
-9.22
3.28
5.05

-0.15
-0.88
1.20
0.85

MONGOLIAN ECONOMIC INDICATORS

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

Date

Last

2014.09
2014.09
2014.11
2014.11
July 31 ,2014

11,094
16,517
1,352.1
12.00

Last

Yield

YoY change
%
7.0
18.8
11.5
-41.5

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

96.50
66.50
92.37
85.87
99.50
98.38
96.95
104.14

Maturity date

7.507
30.844
6.748
7.385
9.234
13.090
11.399
1.009

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

-1.45

0.18

-1.60

DAX -1.92
Hang Seng

1.33

0.35
1.56

S&P/ASX 200

1.01

-1.05

S&P/TSX comp

-0.99

-0.50

-1.69

-0.68

Nasdaq
DJIA

-0.68

-0.95

MSE - Top20

-0.48

-0.69

Volume

-2.17
Thousands

FTSE 100

YTD %

Change % (Day)
MSE TOP 5 MOST TRADED

Trade value '000

NEH

Aspire Mining : identifies hard coking coal at Nuurstei Coking Coal Project
Aspire Mining and Noble Group have completed testwork indicating that hard coking coal is present
at their Nuurstei Coking Coal Project in Mongolia. This categorizes Nuurstei as bituminous mid
volatile coal. The testwork was carried out on a core sample from a hole drilled during the October
201 exploration program. Results confirm a high quality coking coal present at Nuurstei, with a high
index and low volatile matter. Additional work will be required to confirm these results are indicative of
the entire project. The Nuurstei Coking Coal Project complements our larger Ovoot Coking Coal
Project, and presents as a potential road based mining operation which could be in production prior to
the completion of the Erdenet to Ovoot section of the Northern Railway. The Ekhgoviin Chuluu Joint
Venture, which is owned equally by Aspire and Noble, currently has a 60% interest in the Nuurstei
project with a right to move to 90% on the achievement of milestones. Existing data is currently being
reviewed and preparations are underway for a further exploration program this year. Subject to the
results of the 2015 program, the ECJV intends to commence a scoping study for this project based
initially on road based transport to the nearest rail head at Erdenet.
http://www.4-traders.com/ASPIRE-MINING-LTD-9063946/news/Aspire-Mining--identifies-hard-cokingcoal-at-Nuurstei-Coking-Coal-Project-19642784/
GLOBAL NEWS
Russia Cut to One Step Above Junk by Fitch on Oil, Sanctions
Russias credit rating was cut to the lowest investment grade by Fitch Ratings after plummeting oil
prices and the conflict over Ukraine triggered the worst currency crisis since the countrys 1998
default. Fitch, which last downgraded Russia in 2009, cut the sovereign one step to BBB-, according
to a statement issued Friday in New York. The grade, on par with India and Turkey, has a negative
outlook. The economic outlook has deteriorated significantly since mid-2014 following sharp falls in
the oil price and the ruble, coupled with a steep rise in interest rates, Fitch said in the statement.
Plunging oil prices have exposed the close link between growth and oil. The worlds biggest energy
exporter is on the brink of a recession after crude fell more than 50 percent since June and the U.S.
and its allies imposed sanctions following President Vladimir Putins annexation of Crimea from
Ukraine in March. The penalties have locked Russian corporate borrowers out of international debt
markets and curbed investor appetite for the ruble, stocks and bonds.
http://www.bloomberg.com/news/2015-01-09/russia-credit-grade-cut-to-step-above-junk-by-fitch-onoil-slide.html

INDICES CHANGE

Nikkei 225

Mongolians urged to tighten belts amidst looming economic crisis

Mongolian President Elbegdorj Tsakhia Friday urged citizens of the landlocked country to "tighten
belts amidst a looming economic crisis", at a time when the Mongolian government registered sharp
drop in state revenues. In addressing the parliament, Elbegdorj said, "let's tighten our belts starting
with top officials. It can start from me." As commodity prices keep plunging in international markets,
the Mongolian government has registered sharp drop in state revenues. As almost 90 percent of the
Mongolian exports is mineral products such as copper and coal, the ongoing declines in oil and raw
materials prices on international markets have dealt a severe blow to the national economy of
Mongolia. Also falling sharply is foreign direct investment in the country, as a result of legal and
political uncertainty in Mongolia. In efforts to reduce cost and overcome the crisis, the Mongolian
government has recently announced the layoff of 1,600 government officials and a halt of public
welfare programs such as cash handout for children and students, besides freezing many ongoing
programs.
http://www.globaltimes.cn/content/900977.shtml

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

455

BAN

3.70%

563

6,000

4,000

4,000

2,000
-1.00%

6%

January-15

October-14

July-14

August-14

May-14

June-14

April-14

March-14

January-14

October-13

July-13

August-13

May-13

December-14

4%

November-14

2%

September-14

0%

February-14

-2%

December-13

-4%

June-13

-3.15%
1,000

November-13

500

September-13

April-13

678

0
March-13

MIE

2,000

0
January-13

577

February-13

GOV

10 January 2015

MONGOLIAN RELATED COMPANIES

Chg day %

YTD %

Trade value
000 USD

Market cap
mln USD/

52w high

52w low

Currency
cross

3.000

-0.66

-3.23

4,806.3

6,036.90

4.36

2.75

1.00

6.750

2.58

11.75

5,438.6

1,344.66

6.90

3.16

1.19

HKD

0.330

0.00

-2.94

341.0

394.25

0.84

0.32

7.75

DML CN Equity

CAD

1.110

-2.63

-1.77

1,057.5

473.17

1.95

1.02

1.19

Winsway Coking Coal Holdings Ltd

1733 HK Equity

HKD

0.255

-1.92

0.00

173.1

124.10

0.55

0.25

7.75

MoEnCo

276 HK Equity

HKD

0.460

-2.13

15.00

42.9

100.22

1.06

0.38

7.75

SouthGobi Resources

1878 HK Equity

HKD

3.870

-0.26

0.26

12.7

109.19

6.20

3.49

7.75

Central Asia Metals PLC

CAML LN Equity

GBp

172.000

-0.86

-6.01

229,881.4

290.40

190.00

148.00

0.66

Mongolia Investment Group Ltd

402 HK Equity

HKD

0.285

-1.72

-14.93

499.3

247.06

0.38

0.16

7.75

Mongolia Growth Group

YAK CN Equity

CAD

0.700

-2.78

-5.41

10.8

20.56

3.07

0.68

1.19

North Asia Resources Holdings Ltd

61 HK Equity

HKD

0.148

-0.67

0.00

6.3

116.10

0.21

0.10

7.75

Guildford Coal Ltd

GUF AU Equity

AUD

0.035

0.00

-2.78

11.6

26.35

0.11

0.03

1.22

Origo Partners PLC

OPP LN Equity

GBp

6.125

0.00

0.00

0.0

33.12

8.25

6.13

0.66

Entree Gold Inc

ETG CN Equity

CAD

0.220

0.00

7.32

16.0

27.25

0.52

0.18

1.19

Aspire Mining Ltd

AKM AU Equity

AUD

0.035

6.06

6.06

29.3

20.20

0.07

0.03

1.22

Prophecy Coal Corp

PCY CN Equity

CAD

0.070

7.69

40.00

1.4

14.86

0.11

0.04

1.19

FeOre Ltd

FEO AU Equity

AUD

0.026

0.00

0.00

1.2

11.29

0.08

0.02

1.22

Petro Matad Ltd

MATD LN Equity

GBp

2.375

0.00

11.76

14.4

10.06

11.50

2.00

0.66

Xanadu Mines Ltd

XAM AU Equity

AUD

0.125

25.00

25.00

63.5

37.26

0.18

0.03

1.22

Haranga Resources Ltd

HAR AU Equity

AUD

0.013

0.00

-7.14

2.6

3.65

0.09

0.01

1.22

Wolf Petroleum Ltd

WOF AU Equity

AUD

0.040

0.00

-11.11

6.6

9.82

0.08

0.03

1.22

Manas Petroleum Corp

MNAP US Equity

USD

0.080

0.00

-11.05

0.6

13.36

0.17

0.04

1.00

Khan Resources Inc.

KRI CN Equity

CAD

0.430

4.88

-11.34

295.7

24.69

0.49

0.21

1.19

East Asia Minerals Corp

EAS CN Equity

CAD

0.015

0.00

50.00

0.9

1.48

0.11

0.01

1.22

Erdene Resource Development Corp

ERD CN Equity

CAD

0.125

0.00

19.05

0.1

8.70

0.26

0.09

1.19

Modun Resources Ltd

MOU AU Equity

AUD

0.004

33.33

33.33

1.6

5.82

0.01

0.00

1.22

Kincora Copper Ltd

KCC CN Equity

CAD

0.025

0.00

0.00

0.2

6.53

0.09

0.02

1.19

General Mining Corp Ltd

GMM AU Equity

AUD

0.005

0.00

0.00

0.0

0.55

0.02

0.01

1.22

Draig Resources Ltd

DRG AU Equity

AUD

0.016

0.00

23.08

0.8

0.87

0.04

0.01

1.22

Newera Resouces Ltd

NRU AU Equity

AUD

0.002

0.00

0.00

3.3

2.00

0.01

0.00

1.22

Blina Minerals NL

BDI AU Equity

AUD

0.001

0.00

0.00

0.0

1.32

0.00

0.00

1.22

Name

Sym

Currency

Last

Turquoise Hill

TRQ US Equity

USD

Centerra Gold

CG CN Equity

CAD

MMC

975 HK Equity

Denison Mines Corp

30 day graphic

Source: Bloomberg

MONGOLIAN STOCK MARKET

9 January 2015

18

JSC's

TOP20 index

was

14,532.43

3,279

shares

worth

Change day

5.29

mln

MNT

-0.69%

YTD

-2.17%

have

Company name

Trade
volume

Trade value
'000

Last

Chg day

Chg day %

Buy volume

Buy price

Sell price

Sell volume

DHU

140

699

4,995

-5

-0.10%

50

4995

5000

970

TTL

170

697

4,100

-68

-1.63%

10

4050

4100

325

MIE

47

678

14,430

-470

-3.15%

22

14010

15500

265

GOV

78

577

7,400

-75

-1.00%

32

7400

7450

14

BAN

201

563

2,800

100

3.70%

88

2800

2900

100

NEH

26

455

17,510

0.00%

521

17510

20100

UID

656

367

560

10

1.80%

43

551

570

1117

ADL

200

290

1,450

-100

-6.45%

90

1450

1550

3877

APU

75

278

3,701

-49

-1.31%

100

3701

3899

SOR

100

180

1,800

0.00%

16

1800

2070

10

TAV

175

35,000

2500

7.69%

30000

35000

55

HRM

719

115

160

0.00%

65

155

160

5000

UYN

70

67

950

-100

-9.52%

195

950

1050

30

MVO

22

55

2,510

-160

-5.99%

2400

2899

MRX

500

44

88

-2

-2.22%

2000

85

88

2446

MDR

50

25

490

0.00%

50

421

490

236

RMC

112

11

99

0.00%

2040

96

99

2822

HGN

48

99

0.00%

2400

95

99

4556

ETR

30

98

-1

-1.01%

960

90

98

29970

JTB

30

90

0.04%

65

84

90

3479

been

traded.

10 January 2015

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.
-1
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.

92.374