capital markets 36

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Business Environment Macroeconomic Outlook Capital Market Banking Sector Privatization and Investments Economic Freedom Business News In the Spotlight Coming up... Graphic 6. MONEX20 16,000

Capital Markets The one and only stock exchange in Montenegro started to operate in January 2011 after a technical merger with the Nex Stock Exchange and the Montenegro Stock Exchange at the end of December 2010. Following this event, the NEX Stock Exchange ceased to exist as a legal entity. Trade on the Stock Exchange During the first two months of 2011, the total volume of trade carried out on the Montenegrin stock exchange amounted to €6.7 million, which was 30% less than the volume of trade that had been seen on the previous two stock exchanges during the first two months (€9.5 million). During first two months of 2011, a total number of 2,710 transactions were completed. Three types of security were traded: company shares, privatization-investment fund shares and bonds which included government bonds. During the first two months of 2011, the greatest turnover was recorded in the area of company shares (85.2%), while the total turnover in investment funds, as bonds, amounted to 7.4%. Taking into consideration shares from a single company, the highest monthly trade volumes during the first two months in 2011 were reached in January when Jugopetrol Kotor’s shares reached a total of €1.14 million through 69 transactions, and again in February when Telekom Montenegro achieved a total of €0.81 million in trade volume through 144 transactions.

15,500 15,000 14,500 14,000 13,500 13,000 12,500 12,000 11,500 Jan-11

Feb-11

Mar-11

Stock Exchange Indices The new stock exchange uses the two indices MONEX20 and MONEXPIF. These indices were developed from the former Montenegrin stock market indices.

Graphic 7. MONEXPIF 6,800

MONEX20

6,600

6,400

The value of the Montenegro Security Exchange, MONEX20, upon which MSE’s 20 most liquid companies are traded, showed a downward trend from the beginning of 2011. The highest value that was reached by MONEX20 during the first two months of 2011 was recorded on January 24th at a level of 15,724 points, and the lowest value was recorded on February 28th at a level of 13,821 points. Variations in the index value have influenced all of the changes shown by the shares represented in this index, particularly those belonging to the Electric Power Company and to Telekom Montenegro.

6,200

6,000

5,800

5,600

5,400

5,200 Jan-11

Feb-11

Mar-11

MONEXPIF

Graphic 8. Turnover structure

The value of this index showed significant fluctuations including considerable growth and also considerable dips during the first two months of 2011. It reached its highest level on February 15th with a total of 6,673 points. The lowest point was recorded on February 1st with a value of 5,796 points. The index value was influenced in such a way that a similar trend was evident in all of the six privatization investment funds.

7.4% 7.4%

Privatization – Investment Funds on the Stock Exchange

85.3% Shares

PIFs units

Bonds

Graphic 9. Turnover and number of PIFs

shares

Graphic 10. Volume of trade and number of transactions 148,511

160,000

2,500,000 133,864

140,000 2,014,640

1,985,429 1,641,372

1,500,000

40,000

6,882

2,461

55,784

54,325

58,665

1,000,000

1,963

6,000

42,313 748,003

4,000 3,000

691,300

500,000

2,420

2,276 6,040

2,500

6,036

2,000

5,571 1,625

5,000

80,000 60,000

3,000

8,000 7,000

1,943,640

100,000

9,000 8,123

2,000,000 120,000

The total volume of trade that involved PIF shares during the first two months in 2011 amounted to €0.49 million. This represented a drop of 15% when compared with the figures recorded during the same period in 2010 (about €0.58 million in trade volume). In total there were 518 transactions, and these involved a total number of 9.0 million shares taken from all six PIFs. The most actively traded shares during this period were Moneta, whilst the least traded were MIG shares.

3,717 1,365

3,936

4,275

1,432 1,265

1,589

4,361

1,736

1,511 4,260

1,426 3,161 2,490

4,095

1,447

1,500

2,609

1,000

1,263

2,000 500

20,000 1,000

0

0 Atlas Mont

Eurofond

HLT Volume

8

MIG Shares

Moneta

Trend

0

0 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Volume

Transactions


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