Thursday, September 2, 2010

[cpsnewswire] [CPS NewsWire, Thursday, September 2, 2010]

CPS International is a marketing arm of CPS Securities in Mongolia. CPS Securities is a Perth, Western Australia based AFSL License Holder. To trade ASX and international stocks, feel free to contact me at or +976-99996779.




George L. Tumur: Trust Most Important in Securing Foreign Investment


September 2 (Summarized from Daily News/Udriin Sonin) George Lkhagvadorj Tumur, Managing Director of Hunnu Coal (ASX:HUN), gave an interview to local daily newspaper “Udriin Sonin” on today’s issue.


The interviewer begins the interview by pointing out the unique fact of Hunnu Coal among foreign listed Mongolian mining companies of being run by a Mongolian managing director.


In the interview, George talks about:


-       how the idea of Hunnu Coal came about,

-       what’s involved in successfully running a company once it has gone public, i.e. maintaining the trust of and constant flow of information to investors, etc.

-       what factors can and has influenced Hunnu shares since listing in February this year, e.g. president’s ban on new exploration licenses, Australia’s super mining tax, …

-       Hunnu’s policy of working with local drilling, geophysical, etc. contractors,

-       Hunnu’s plan of having 3 operational mines in 4 years time,

-       HK listing in 12-18 months’ time to raise funds for further expansion


(CPS Securities was lead broker in Hunnu Coal’s IPO)




Firms lining up to list as Mongolia Mining lures big backers


September 2 (The Standard, HK) Eleven listing candidates are set to launch initial public offerings this month to raise up to HK$27.7 billion.


Mongolia Mining, the first Mongolian firm to tap the Hong Kong IPO market, has already secured several strategic investors as it seeks to raise US$1 billion (HK7.8 billion). They include Kerry Group, which owns a 10 percent stake, US fund Ancora Capital holds 7.6 percent, while two Mongolian oil miners, Petrovis and Shunkhlai, own a combined 20.1 percent, sources said.


Also, the European Bank for Reconstruction and Development bought a 5percent stake in the miner's largest shareholder, MCS Group, which owns 57 percent of the company.

Link to article


(Mogi: Actually, EBRD owns a direct stake in Energy Resources, or Mongolian Mining Corp. as it is being named by recent articles. The investment agreement between ER and EBRD was signed on February 24, 2009, according to its website)




New date for Anod Bank shareholders’ meeting


September 2 ( The Mongolbank’s special representative at Anod Bank, which has gone into liquidation, has said that a general meeting of its shareholders will be held on November 30. He gave no reason why the meeting was not held on the earlier scheduled August 15. About 1,000 Mongolians own shares with face value of over MNT10 billion in the bank. They have been demanding a meeting for long and have formed a committee to protect their rights.


Link to article






China coal trucks stuck in 120 km traffic jam


BEIJING, Sept 2 (Reuters) - More than 10,000 trucks mainly carrying coal are stuck in a 120 km (75 mile) traffic jam in the northeastern Chinese region of Inner Mongolia, in the latest dramatic snarl-up on the country's roads.

China is the world's top producer and user of coal, which has fuelled its rapid economic growth over the past three decades, and Inner Mongolia has large reserves.


Just over a week ago the authorities finally cleared a previous 100-km jam that had lasted nine days.

Link to article






Close: Shares of Mongolia Related ASX Listed Companies, September 2, 2010




$ +/-









 0.880  No change









 0.013  Down









 0.185  No change









 0.080  Down









 0.125  Down









 32.270  Up









 73.120  Up









 38.320  Up








An * next to the security code indicates there has been an announcement today relating to that security. Click on the * to view the list of today's announcements.




Shares rise as confidence grows


September 2 (AAP) Close, Australian stocks have closed higher as investors rushed back into the market, encouraged by strong economic data.


The benchmark S&P/ASX200 index was up 37 points, or 0.8 per cent, at 4532.7, while the broader All Ordinaries index had risen 36.2 points, or 0.8 per cent, to 4563.


All sectors posted gains, with financials up 1.1 per cent and materials rising 0.7 per cent.


The S&P/ASX200 is up about 4 per cent so far this week at a three-week high after data released yesterday showed the economy grew 1.2 per cent in the last quarter - the fastest pace in three years.



- Europe shares slip at the open
- Asian shares rise to two-week high
- The dollar dips back below 91 US cents
- Oil slips to $US73 as focus turns to US jobs
- Gold inches up to $US1246
- Dow futures are 32 points lower at 10,240

Good day for blue chips


Rio Tinto rose 88 cents, or 1.2 per cent, to $73.12, while BHP Billiton gained 41 cents, or 1.1 per cent, to $38.32.

Preliminary national turnover was 2.12 billion securities worth $5.12 billion, with 654 stocks up, 416 down and 369 unchanged.


Link to article




Trade surplus shrinks as exports retreat


September 2 (BusinessDay) Update, Australia's trade surplus almost halved in July, as coal exports declined to China and India, denting some of the recent momentum on the international front.

China, coal drop


A sharp decline in coking coal exports to China and India contributed significantly to the lower surplus for the month.


Exports were hit by a 27 per cent drop in hard coking coal volumes in July, more than reversing a 9 per cent increase in June, ABS data show.


ANZ economist Riki Polygenis said exports of coking coal to China plunged 77 per cent for the month as the Chinese government closed 40 per cent of its steel industry for maintenance, denting demand for Australia's commodities. Coking coal is used for making steel.


Coking coal exports to India also fell, down 47 per cent, or $329 million, on the month before.


Moody's Analytics economist Matthew Circosta said the coal drop "does appear a little strange given that these economies are some of the best performing in the world right now."


"We expect to see a recovery in the next couple of months," said Mr Smirk.

Link to article






Asian Stocks Rise to Two-Week High on U.S. Manufacturing Report


Sept. 2 (Bloomberg) -- Asian stocks rose, lifting the MSCI Asia-Pacific Index to a two-week high, as faster-than-estimated growth in U.S. manufacturing supported confidence in global economic growth.

The MSCI Asia Pacific Index gained 1 percent to 119.26 as of 7:23 p.m. in Tokyo, the highest level since Aug. 19. The gauge advanced 1.3 percent yesterday after reports showed China’s manufacturing and Australia’s gross domestic product grew faster than economists estimated.


“The U.S. manufacturing data served to allay fears of a double-dip recession,” said Tim Schroeders, who helps manage about $1 billion at Pengana Capital Ltd. in Melbourne. “Yesterday’s manufacturing report out of China was better than expected and Australia’s buoyant GDP data also served to build investor confidence.”


Japan’s Nikkei 225 Stock Average gained 1.5 percent, Hong Kong’s Hang Seng Index jumped 1.2 percent and Taiwan’s Taiex Index climbed 0.7 percent. South Korea’s Kospi Index rose 0.6 percent. China’s Shanghai Composite Index increased 1.3 percent as automakers advanced on higher car sales.


‘Leading Indicator’


Futures on the Standard & Poor’s 500 Index lost 0.2 percent. The index climbed 3 percent yesterday, the biggest gain since July 7, after the ISM’s factory index rose to a three-month high of 56.3 in August. Readings greater than 50 signal growth, and the figure was projected to drop to 52.8, according to the median forecast of economists in a Bloomberg News survey.

“Manufacturing is a good leading indicator,” said Matt Riordan, who helps manage about $5 billion at Paradice Investment Management in Sydney. “An increase shows manufacturers are receiving good signals from their customers. If higher levels can be maintained, it will ultimately feed through to better employment, which then leads to a cycle of economic improvement.”

Link to article




U.S. Avoids Recession as Data Can’t Get Much Worse 


Sept. 2 (Bloomberg) -- The U.S. economy is so bad that the chance of avoiding a double dip back into recession may actually be pretty good.


The sectors of the economy that traditionally drive it into recession are already so depressed it’s difficult to see them getting a lot worse, said Ethan Harris, head of developed markets economics research at BofA Merrill Lynch Global Research in New York. Inventories are near record lows in proportion to sales, residential construction is less than half the level of the housing boom and vehicle sales are more than 30 percent below five years ago.


“It doesn’t rule out a recession,” Harris said. “It just makes it less likely than otherwise.”

Link to article




"Mogi" Munkhdul Badral

Executive Director

CPS International


Mobile: +976-99996779


CPS International is a marketing arm of CPS Securities in Mongolia. CPS Securities is a Perth, Western Australia based AFSL License Holder. To trade ASX and international stocks, feel free to contact me at or +976-99996779.


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