Wednesday, August 13, 2014
Undercover bull market in Mongolia
Recent overview of Mongolia stockmarket from BDSEC in Mongolia which is the largest brokerage in Mongolia. Regardless of all of the issues in Mongolia there has been a stealth bull market going on in Mongolia. This has not been reflected in the main MSE 20 average as it is populated with state owned enterprises which have not done well. However the economy has been growing albeit with inflation and a depreciating currency. Nimble companies are making money and this has been reflected in their stock prices. Regardless of what happens in the near term between the GOM and Rio Tinto regarding the Oyu Togoi expansion there are many other things happening there. I expect to see the Chinese President in Mongolia next week and Putin should be visiting in September. Expect to see a flurry of deals and agreements to coincide with both visits. Mongolia has issues but I believe it is slowly working out from under its recent negative perception.