Altan San securities

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					Altan San Securities
     Broker Dealer and Underwriting Company
         Mongolian Economy Overview

   GDP growth rate 2.8% forecasted for 2009

                      Share of GDP by sectors

                           Agriculture           Industry   Services


                                     21%
                    45%



                                           34%




 Inflation is expected to reach 12% Year over Year
 FDI in 2009 : over $700 million
Stock Market
   Professional institutions which act on the Mongolian capital
    markets, and their activities and obligations:


          Mongolian Stock Exchange
          Financial Regulatory Commission
           Central Depository and Clearing House
           Intermediate Organizations 44 brokers and dealing member companies of the MSE
          13 underwriting companies, 3 investment advisory companies
           Security issuers: 357 listed companies out of which only 85 companies that are in
           compliance with the current listing requirements of FRC.
          Investment products on MGL’s capital market: Stocks, Corporate bonds and Government
           bonds
            How to Accelerate the Development
            of the Mongolian Stock Market
   MSE and FRC must require audited quarterly financial reports from listed companies and
    this information must be available to the public free of charge. (only 3 companies have so
    far submitted their financial statements for the first half of 2009 to MSE). Without
    transparency this market will not be able to attract foreign institutional investors and
    domestic investors.
   Bond market has to be developed further in order to mitigate the over-concentration of
    risks in commercial banks. Particularly, the development of government bonds market,
    because of its potential size and its function of providing a benchmark.
   Provide the legal framework for establishing various types of investment funds such as
    private equity, mutual funds, pension and insurance funds, exchange traded funds, etc.
    Investment funds will increase the overall liquidity
   Educate the management of the listed companies about the corporate governance and
    the importance of disclosing important company news to the public. This market needs
    reliable information about the listed companies’ activities
   Protection of the stockholders interests. A revision to the Securities Law must be made
    to protect the interests of the individual and small stockholders. The government needs
    to quickly resolve the case of Anod Bank’s IPO to the satisfaction of the stockholders in
    order to maintain the dwindling public confidence and trust in the stock market .
3 Key Steps to Changing the Capital
Markets
   1. Setting clear objectives
    ◦ An essential first step is to define the objectives for both the market and the regulator.
      Saudi Arabia recently established clear, simple regulations covering the wider economic
      benefits of capital markets, including employment, investor protection, and financial
      stability. The CMA's development plan —  includes investment guidelines, competition
      safeguards, and a role for education and professionalism—  .


   2. Understanding the regulatory imperative
    ◦ Regulators must decide, among other things, whether their country's new regulatory
      regime will be based predominantly on principles, like the United Kingdom's, or on
      rules, like Singapore's. Should institutions be allowed to fail or is some sort of lifeboat
      imaginable? An optimum legal structure also needs to be established at the outset.
      Many countries prefer to bring their existing laws into line with the supervisory
      demands of the modern market. Others, such as Singapore and Saudi Arabia, start with
      a clean slate and incorporate best practices from around the world. Finally, leaders
      must ensure that the organizational design of the regulator is clearly aligned with its
      precise mission, which can include such elements as authorization, corporate finance,
      supervision and surveillance, enforcement, and investor protection.
3 Key Steps to Changing the Capital
Markets
   3. Actively developing the market
    ◦ Countries that simply reestablish the regulatory regime don't
      capture the full value of pro-growth reform. Successful
      leaders should take at least three steps: stimulate the
      development of new asset classes other than equities;
      encourage pension fund reform, such as expanding the range
      of assets available for investment, thereby attracting
      institutional investors; and promote privatization, which can
      stimulate capital markets by providing an IPO stream and by
      exposing inefficient enterprises to the private sector's
      expertise. Key factors for successful privatization include
      focusing on one clear objective at a time, keeping the market
      informed, and structuring transactions to reach certain target
      groups.
MSE’s Performance
In the second half of 2009 Mongolian Stock
  Exchange has started to show the signs of
  recovery:
 Total trading value- 14.40 bln MNT
  (from Jan 1, 2009 – Sep 30, 2009)
 Market capitalization -730.7 billion
  MNT (As of October 12, 2009)
 MSE’s top-20 index reached 7752.21
  units. (As of October 12, 2009)
Share trading report 2006-2009
                       share                     Company Bond                       State Bond

            quantity             amount          quantity        amount        quantity        amount


 2006
            54,531,726.00   12,604,275,775.00₮   99,289.00   960,882,150.00₮   47,036.00    4,461,502,496.00₮

 2007
           116,103,713.00   62,126,000,835.05₮ 134,202.00 850,709,792.00₮ 408,608.00       39,599,345,228.00₮

 2008
           170,147,608.00   60,349,326,390.00₮   50,200.00   502,000,000.00₮   16,060.00    1,494,737,758.00₮
2009/Sep
   30      61,621,424.00    14,403,234,671.00₮
        ALTAN SAN SECURITIES
 Altan San Securities, which provides comprehensive brokerage
  services, is one of the leading stock broking companies in
  Mongolia with over 18 years of experience
 Over 20000 clients who are based in Mongolia, other parts of
  Asia, Europe and North-America.
 We have been operating as managing underwriter and broker-
  dealer on the Mongolian stock market as well as we have been
  trading 1.41% of total volume
 Ranked among 11th of total security firms on Mongolian Stock
  Exchange
 Contributes information to the Bloomberg which covers market
  news, economy, political news and business news
 Altan San Securities manages around 1.5 million USD
THANK YOU