Business Environment Macroeconomic Outlook Capital Market Banking Sector Privatization and Investments Economic Freedom Business News In the Spotlight Coming up... Graphic 8. MONEX20
Capital Markets Trading Volume The downward trend in volume and in values on the market, as we have seen over the last few years, finally stopped in 2011. A slight growth of 0.9% was recorded in 2011, due primarily to an increase in the volume of trade stock of 58% in comparison with the previous year. Additionally, important drops in the levels of trade volume were recorded in bonds (83%) and in the investment fund (44%).
Trade on the Stock Exchange
18,000
During 2011, the total volume of trade carried out on the Montenegrin stock exchange amounted to €58.9 million, which was 0.9% more than the volume of trade that had been seen on the previous two stock exchanges during 2010 (€58.8 million). During 2011, a total number of 13,386 transactions were completed, which was 36% less than in 2010.
16,000 14,000 12,000 10,000 8,000
Three types of security were traded: company shares, privatization-investment fund shares and bonds which included government bonds. During 2011, the greatest turnover was recorded in the area of company shares (88.5%). This was followed by investment funds at 7.5%, and the total turnover of bonds amounted to 4.0%.
6,000 4,000 2,000 0 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11
Graphic 9. MONEXPIF 8,000 7,000 6,000
Taking into consideration shares from a single company, the highest monthly trade volumes in 2011 was reached in July, when the shares of Hipotekarna Banka reached a volume of 5.43 million through 74 transactions. Other companies that traded well in 2011 were Prva Banka Crne Gore (€5.38 million through 74 transactions - April), Aluminum Plant (€3.50 million through 405 transactions - September) and Invest Bank Montenegro (€3.24 million through just one transaction - November).
5,000
Stock Exchange Indices
4,000 3,000
The new stock exchange uses the two indices MONEKS20 and MONEKSPIF. These indices were developed from the former Montenegrin stock market indices.
2,000 1,000 0 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11
Graphic 10. Turnover structure 7.5%
4.0%
88.5% Shares
PIFs units
Bonds
Graphic 11. Turnover in PIF’s 800,000 700,000
698,647
26,446,041 682,107
757,107
600,000 14,295,036
400,000
305,990 8,916,534
250,815
200,000
15,000,000 10,379,172 10,843,333 10,000,000
4,320,645
5,000,000
100,000 0
0 Atlas Mont
Eurofond
HLT Volume
8
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 in 2011 was recorded on January 24th at a level of 15,724 points, and the lowest value was recorded on December 12th at a level of 8,346 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, Aluminum Plant and to Telekom Montenegro.
The value of this index showed significant fluctuations, including considerable growth and also considerable dips in 2011. It reached its highest level on February 15th with a total of 6,673 points. The lowest point was recorded on December 2nd with a value of 3,251 points. The index value was influenced in such a way that a similar trend was evident in all of the six privatization investment funds.
Privatization – Investment Funds on the Stock Exchanges
20,000,000
500,000
300,000
MONEXPIF
30,000,000 25,000,000
597,760
MONEX20
MIG Shares
Moneta
Trend
The total volume of trade that involved PIF shares in 2011 amounted to €3.29 million. This represented a drop of 44% when compared with figures in 2010 (about €7.91 million in trade volume). In total there were 3,391 transactions, and these involved a total number of 75.2 million shares taken from all six PIFs. The most actively traded shares during this period were Euro fond, whilst the least traded were MIG shares.