The Analysis in Mongolian Stock Market Current Standing and Future Development

This thesis was the result of primary initiative, which leads to perform an academic work related

with the stock market in Mongolia

The essential way to improve the standing of the Mongolian stock market is to enhance the

liquidity through some concerns included in literature review, such us extension of trading hours,

market transparency and market liberalization or internationalization. Continual analysis of the

market performance based on all usable data is important for more confidence and reasonability of

the measures to be implemented over time, in order to achieve better performance.

According to research methodology we estimated liquidity proxies and analyzed time series,

bivariate correlation and simple regression. In addition, we also completed Mongolian stock market

SWOT analysis based on previous sections and the background of its market participants. Though

there might be realized somewhat optimistic assumption or trust, in which there will be good

opportunity and domestic potential to develop the stock market in Mongolia, another part was not

left, also considered.

There are also some objectives, which oriented to improve the current standing of Mongolian

stock market, expecting that mid and long term positive implications. In here:

1. Improvement in the quality of stock market- focused research and methodology

2. Promote the mergers between broker dealing companies to increase their competitiveness

and financial capability

3. Effective use of Electronic trading systems (ETS) offering to investors the opportunity to get

benefit from active online trading

4. Full- exposure and optimal use of domestic market potential

5. Progress to advanced market infrastructure

6. Well- formulated state policy to support market participants

Limitations and future work

Low-frequency data in our analysis provide estimates that have much higher variance. Though

we recognize the relevance of, and interest in, the estimation of other liquidity proxies, such us

Roll's spread, LOT measure (Lesmon, Ogden,