• Overview of trading activity on the Mongolian Stock Exchange
• The Monetary Policy Committee tightened requirements on external funding sources.
• A legal framework has been introduced to allow inheritance of Erdenes Tavan Tolgoi JSC shares.
• The Bank of Mongolia purchased 1.06 tons of precious metals in April, marking year-on-year growth.
• Oil prices surpassed $111 as uncertainty around the Strait of Hormuz persists.
• OpenAI’s missed targets weighed on AI-related stocks.
• Overview of global capital markets

► MONGOLIAN STOCK EXCHANGE

Over the course of the week, a total of 5.19 million securities with a combined value of MNT 14.48 billion were traded on the Mongolian Stock Exchange. In terms of trading value, Invescore NBFI JSC, Khan Bank JSC, Trade and Development Bank, Mongolian Stock Exchange JSC, and Golomt Bank JSC led the market. During the period, a total of one block trade was executed.

• Invescore NBFI JSC (INV): 115 thousand shares at MNT 10,560, totaling MNT 1.2 billion.

Mongolian Stock Exchange indices maintained their upward momentum last week, extending the ongoing recovery trend. The TOP-20 Index rose +1.04%, the MSE A Index +0.59%, and the MSE B Index +1.09%, indicating sustained buying activity in the market. Notably, the stronger performance of the MSE B Index suggests improving participation in the small-cap segment, with gains beginning to broaden beyond large-cap stocks. This movement also reflects the easing of earlier ex-dividend-related technical pressure, signaling a transition from a short-term rebound phase toward more stable growth.
However, the recovery is not yet fully broad-based, and secondary market liquidity remains relatively limited. As such, the current uptrend can be viewed as a continuation of post-correction recovery rather than a new growth cycle, with future direction likely to depend on broader market participation and improvements in liquidity conditions.

⇒ MONETARY POLICY COMMITTEE TIGHTENS REQUIREMENTS ON EXTERNAL FUNDING

At its meeting on April 28, 2026, the Monetary Policy Committee (MPC) of the Bank of Mongolia decided to revise reserve requirements related to banks’ external funding. Effective October 1, 2026, 25% of foreign currency bonds and loans with maturities between 360 days and 3 years, newly raised from international markets, will be included in the reserve requirement base.

Policy rationale and scope:

• Rising external dependence: The share of external funding in banks’ total liabilities has increased in recent years, raising structural vulnerability to external shocks.
• Shift toward longer-term stability: The measure aims to discourage short- and medium-term foreign borrowing while promoting more stable, long-term funding sources.
• Reducing currency and maturity mismatches: Borrowing in foreign currency while lending in local currency creates FX and duration risks, which the policy seeks to mitigate.
• Stress test results: The MPC noted that the banking system remains adequately capitalized and resilient even under adverse macroeconomic scenarios.
• Lower cyclical risk: Financial cycle risks have moderated, allowing room for further macroprudential tightening.

The decision comes amid elevated global uncertainty, where the cost and availability of external financing may shift rapidly and affect capital flows. By partially incorporating external liabilities into reserve requirements, policymakers aim to strengthen funding resilience and reduce reliance on volatile external sources.

From a market perspective, this policy is likely to increase the cost of short- to medium-term external funding, potentially putting upward pressure on banks’ funding costs and lending rates. Banks with a higher reliance on foreign borrowing are expected to be more directly affected. Investors in listed banking stocks on the Mongolian Stock Exchange should closely monitor upcoming quarterly disclosures for changes in funding structure, external liabilities, and cost dynamics.

⇒ LEGAL FRAMEWORK INTRODUCED TO ENABLE INHERITANCE OF ERDENES TAVANTOLGOI JSC SHARES

At its regular meeting on April 29, 2026, the Government approved a resolution outlining measures related to Erdenes Tavantolgoi JSC shares. Under the resolution, authorities have been instructed to organize the transfer and inheritance of 1,072 shares held by 132,203 deceased shareholders, as recorded in the Central Securities Depository as of December 31, 2025.

How the inheritance process works:

• Notary certification: Legal heirs (family members or relatives) must first establish inheritance rights through a notary.
• Securities account transfer: Once certified, the shares are registered under the heir’s name through the Central Securities Depository.
• Dividend entitlement: Upon transfer, heirs become eligible to receive accumulated dividends from previous years.

Currently, undistributed dividends from prior years remain held in state accounts. Completion of the inheritance process will allow beneficiaries to claim these accumulated payments. The process is expected to commence from June 1, 2026, following necessary preparatory steps.

The resolution is also seen as part of broader preparations to transition Erdenes Tavantolgoi into a publicly listed company. However, it is important to note that this measure does not enable share trading. Under Government Resolution No. 181 (2012), restrictions on transferring or selling these shares remain in place until secondary market trading is officially opened.

⇒  BANK OF MONGOLIA PURCHASED 1.06 TONS OF PRECIOUS METALS IN APRIL, RECORDING YEAR-ON-YEAR GROWTH

In April 2026, the Bank of Mongolia purchased 1,057.7 kg of precious metals, bringing total purchases since the beginning of the year to 4.3 tons. This represents a 30.7% increase year-on-year, indicating stronger gold supply activity.

Regionally, purchases were concentrated, with 1,020.3 kg acquired through the Bayankhongor branch and 124.2 kg through the Darkhan-Uul branch, highlighting a supply concentration in specific mining regions.

The Bank of Mongolia’s purchase price is linked to international gold prices, with the average domestic purchase price reaching approximately MNT 541,552 per gram in April 2026. Elevated global gold prices continue to incentivize domestic supply and support increased participation from local producers.

Overall, the rise in precious metal purchases contributes positively to the country’s foreign exchange reserves and supports macroeconomic stability. In the near term, gold supply is expected to remain relatively stable, underpinned by favorable pricing conditions.
 

Global equity markets delivered an overall positive performance, but gains remained uneven and region-specific. The U.S. saw broad-based strength, Europe exhibited more cautious and subdued movements, while Asia showed mixed performance driven largely by domestic factors. This suggests that markets are moving away from synchronized trends toward a more fragmented, segment-driven dynamic shaped by sector composition, monetary policy expectations, and the geopolitical environment.

U.S. STOCK MARKET

• S&P 500: +1.08%
• Dow Jones: +0.79%
• Nasdaq:  +1.30%

U.S. equity markets posted broadly distributed gains, with the S&P 500 (+1.08%), Nasdaq (+1.30%), and Dow Jones (+0.79%) all closing higher. The stronger performance of the Nasdaq indicates continued demand for technology and growth stocks, while the relatively modest gain in the Dow suggests more subdued performance in traditional sectors. The breadth of the rally points to a partial recovery in risk appetite, with investors focusing more on corporate earnings and market momentum despite lingering macro uncertainty. However, unresolved concerns סביב interest rate expectations and inflation trends continue to limit a fully broad-based rally, keeping the market’s advance somewhat selective.

EUROPEAN STOCK MARKET

• FTSE 100: +0.42%
• STOXX Europe 600: +0.16%
• DAX 40 (Герман): +0.40%
• CAC 40 (Франц): -0.56%

European equity markets saw limited and uneven gains. The FTSE 100 (+0.42%), DAX 40 (+0.40%), and STOXX Europe 600 (+0.16%) posted modest increases, while the CAC 40 (-0.56%) declined, reflecting sector-driven divergence across the region. Persistent uncertainty סביב energy prices, inflation pressures, and the monetary policy outlook has kept investor positioning cautious, thereby constraining the pace and breadth of the market’s advance.

ASIAN STOCK MARKET

• Nikkei 225: -0.61%
• KOSPI: +1.00%
• CSI 300: +0.48%
• SSEC : +0.92% 

Asian equity markets delivered mixed performance, with China’s SSEC (+0.92%) and CSI 300 (+0.48%), along with South Korea’s KOSPI (+1.00%), posting gains—suggesting improving domestic policy expectations and a modest recovery in investment flows. In contrast, Japan’s Nikkei 225 (-0.61%) declined, likely reflecting currency volatility and a technical pullback following prior gains. Overall, external influences appeared less dominant in the region, with market movements increasingly driven by country-specific macro conditions and policy outlooks.

⇒  OIL SURGES ABOVE $111 AS HORMUZ UNCERTAINTY PERSISTS

U.S. President Donald Trump is approaching the 60-day deadline under the War Powers Resolution related to military action involving Iran, placing legal and geopolitical developments at the center of market attention. Under the law, military engagement must be approved by Congress within 60 days or halted. However, the administration argues that the early April ceasefire effectively “terminated hostilities,” removing the need for Congressional authorization.

Oil prices moved higher on Friday, following a volatile prior session that underscored persistent geopolitical risk. Brent crude for June delivery surged to a four-year high of $126.41 per barrel before settling at $114.01, while July Brent futures rose 1.11% to $111.63 and WTI gained 0.45% to $105.54. The price action reflects ongoing concerns over supply disruption and elevated uncertainty.

The Strait of Hormuz remains effectively constrained, with tensions ongoing since late February. Iran has maintained its stance of not fully reopening the route ahead of progress in nuclear negotiations, keeping a key global energy chokepoint under pressure. Meanwhile, political tensions in Washington persist, with lawmakers disputing the legality of military actions, adding another layer of uncertainty.

Risks of renewed escalation remain present. Reports indicate that U.S. military leadership has prepared contingency plans for a “short and decisive” strike on Iran, while Iranian officials have warned of retaliatory measures if hostilities resume. At the same time, ING Bank has revised its Brent forecast upward, reflecting tighter supply expectations, while the UAE’s decision to exit OPEC adds further uncertainty to global oil supply dynamics.

Higher energy prices are already feeding through to consumers, with gasoline prices in parts of the U.S. exceeding $6 per gallon, highlighting inflationary pressure.

Overall, despite the ceasefire, a combination of legal ambiguity, geopolitical tension, and supply risks continues to support elevated oil prices and sustain volatility in global markets. Brent remaining above $110 per barrel is likely to increase Mongolia’s fuel import costs, reinforce inflationary pressure, and weigh on operating margins for transport and mining companies listed on the Mongolian Stock Exchange in the coming quarters.

⇒ OPENAI MISS WEIGHS ON AI-RELATED STOCKS

Shares across the AI ecosystem declined sharply after reports that OpenAI fell short of revenue and user growth targets, raising concerns about the sector’s near-term growth trajectory.

Japan’s SoftBank Group, a key OpenAI backer, dropped -9.9% in Tokyo trading, while U.S.-listed compute provider CoreWeave fell -8% to $103.05. Major technology names also came under pressure, including Oracle (-6.3%), Nvidia (-3.9%), and AMD (-7.3%), signaling a broader reassessment of AI-driven growth expectations.

The pullback extended to infrastructure-linked companies supporting AI expansion. GE Vernova (-5.2%), Vertiv (-7.2%), and Caterpillar (-2.7%) declined, highlighting how AI investment flows are deeply interconnected across power, data centers, and hardware supply chains—not just software.

According to reports, OpenAI’s underperformance on monetization and user acquisition may create challenges in funding high-cost compute agreements. Management has flagged rising financial pressure, underscoring the capital-intensive nature of scaling AI models and infrastructure.

After a period of aggressive investment and elevated expectations, the market is increasingly focused on the “AI monetization gap”—the disconnect between technological potential and realized revenue.

Overall, concerns around OpenAI are being interpreted as a systemic signal for the AI ecosystem, rather than an isolated company issue. In the near term, AI-related equities are likely to remain volatile as investors reassess valuation levels and the sustainability of growth assumptions.