Capital Marktets
We Introduce
CAPITAL MARKETS
During the first 10 months of 2012 the Montenegrin capital market was characterized by negative trends. This was followed by decreases in trade volume and in the number of transactions made, in comparison with the same period of 2011, indicating that the capital market crisis is not over yet. The greatest turnover was recorded in the area of company shares, followed by bonds and investment funds. The most important innovation has been the adoption of a new methodology for calculating indices, which aims to present an accurate picture of the situation in the capital market.
Trade on the Stock Exchange During the first 10 months of 2012, turnover on the Montenegrin stock exchange amounted to only € 27.21 million, thus showing a decline of 39.9% in comparison with the same period in 2011. The average monthly turnover during the first half of the current year was only € 2.72 million, which was much lower than the average monthly turnover in 2011 (€ 4.47 million). This indicates that the capital market crisis is not yet over. The decline in the turnover of the stock exchange during the first 10 months of 2012 was also followed by a decrease in executed transactions. During the first half of 2012, a total number of 5,853 transactions were completed. This was 51% less than during the same period in 2011 (11,456 transactions). During the first 10 months of 2012, three types of securities were traded: company shares, privatization-investment fund shares and bonds which included Government bonds and Ministry of Finance bonds. The greatest turnover was recorded in the area of company shares (62.8%), followed by bonds (26.4%). The total turnover of investment funds amounted to 10.8%. Company shares fell in comparison with figures recorded in the same period last year, while bonds and investment funds recorded increases (354% and 107% respectively). Looking at shares on an individual company basis, the highest monthly trade volume was recorded in March, during the first 10 months of 2012;
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Aluminum Plant shares reached a volume of 3.98 million through a series of block transactions. Apart from this, the most traded shares during the last six months were those of Telekom Montenegro which achieved € 1.11 million on the A List.
Stock Exchange Indices The Montenegrin stock exchange uses two indices, MONEX20 and MONEXPIF. In March 2012, the Montenegrin Board of Directors adopted a new methodology for calculating the indices MONEX20 and MONEXPIF. Their aim was, by adopting a new method for calculating the index, to achieve a more accurate representation of the capital market situation. The new method that was adopted to calculate the index is available on the official website of the Montenegrin stock exchange. MONEX20 The value of the Montenegrin Stock Exchange, MONEX20, upon which MSE’s 20 most liquid companies are traded, has decreased steadily since the beginning of 2012 with just a few oscillations. However, a slight increase was evident last month. The highest value that was reached by MONEX20 during the first half of 2012 was recorded on 23 March with 9,807 points. The lowest value was recorded on 27 Jul with 8,138 points. Variations in index value have influenced all of the changes shown by shares represented in this index. In particular, the following have been
most greatly affected: Telekom Montenegro, Jugopetrol Kotor, Prva Banka, Montenegrin Electric Transmission System, Atlas Bank and Container Terminal and General Cargo. MONEXPIF The value of this index has declined steadily with just a few oscillations since the beginning of 2012. It reached its highest level on 2 February with a total of 4,273 points. The lowest point was recorded on 21 June with 3,022 points. The index value was influenced in such a way that a similar trend was evident in all of the privatization investment funds.
Privatization – Investment Funds on the Stock Exchanges The total volume of trade involving PIF shares during the first 10 months of 2012 amounted to €2.933 million. This showed a growth of 7% when compared with the same period in 2011. In total, during the first half of 2012, 1,218 transactions were made. These transactions represent a total of 61,298 million shares. The most actively traded shares during this period were Atlas Mont (34,607 million shares). The privatization-investment fund “MIG” JSC Podgorica has changed its name to the “Society for Task Management and Real Estate Management MIG” JSC Podgorica. It started to trade its shares on the free stock market, by auction, on 27 March. ■
Global Entrepreneurship Week (GEW) Nov 12-18 Global Entrepreneurship Week (GEW) is the largest entrepreneurial event in the world. Its aim is to connect people through local, national and global activities that are designed to help them to explore their options as innovators and to instruct them in local and global trends regarding entrepreneurship. Students, successful entrepreneurs and business people, along with representatives from both governmental and nongovernmental sectors participated in ■ of activities around the world a series to connect and celebrate the idea of entrepreneurship. Last year around 24,000 organizations in 115 countries were involved in the campaign, and more than 37,000 events were attended by over 7 million people. Contributions were made by the U.S. President, Barack Obama, the British Prime, Minister David Cameron, the Prime Minister of Israel, Benjamin Netanyahu, as well as many others.
for graduates of the University of Donja Gorica for three consecutive years, and which is intended for high school students from all regions in Montenegro. The first school attracted 37 participants, the second 68, and the organizers hope that they will attract at least 111 participants this year. A five-day program is planned and participants will have the opportunity to learn about the basics of entrepreneurship and innovation. Traditionally, students attend lectures given by entrepreneurs and representatives from the institutions that are responsible for creating an entrepreneurial climate in the country. They also pay a visit to the Prime Minister and are presented with a certificate at the end of their course by the Ministry of Education.
- Presented the Study for Services of Company development program to the tourism sector in the central and mountain regions of Montenegro in cooperation with GIZ, a German body which provides technical assistance, and which, for years, has implemented programs to support entrepreneurs and small and medium enterprises in Montenegro. - Presented research findings on entrepreneurship by women and entrepreneurship in the informal economy, in cooperation with t he C om m itte e of Wome n’s Entrepreneurship of the Chamber of Commerce of Montenegro (PKCG). ■
Since 2009, CEED has hosted the Global Entrepreneurship Week in Montenegro. In striving to create a successful event, CEED confirmed its desire to support and promote the idea of entrepreneurship, private property and free markets, and to support any initiative leading to the realization of business ideas. This has greatly contributed to the development of the entrepreneurial spirit in Montenegro, as a guarantor of economic prosperity in the medium to long term. Within GEW activities, CEED: - Supp or t e d t h e S c h o o l of Entrepreneurship and Innovation for Youth, which has been organized
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