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Capital Markets CAPITAL MARKETS A downward trend in volume and in market value, as has already been evident for the last few years, continued during the first nine months of 2011. The fall in the volume of trade in capital market during the first nine months of 2011 was seen primarily as a result of reduced levels of bond trading (84%) and a decrease in investment (47%). This, in turn, reduced growth levels in stock by 69% when compared with the same period last year.
Trade on the Stock Exchange
During the first nine months of 2011, the total volume of trade carried out on the Montenegrin stock exchange amounted to €41.1 million, which was 3% less than the volume of trade that was seen on the previous two stock exchanges during the first nine months of the previous year (€42.5 million). During first nine months of 2011, a total number of 10,552 transactions were completed, which was 32% less than during the same period last year.
14.000 12.000 10.000 8.000 6.000 4.000 2.000 0 jan.11
Three types of security were traded: company shares, privatization-investment fund shares and bonds which included government bonds. During the first nine months of 2011, the greatest turnover was recorded in the area of company shares (89.2%), followed by investment funds (6.2%). The total turnover of bonds amounted to 4.6%. Taking into consideration shares from a single company, the highest monthly trade volumes during the first nine months in 2011 were reached in July, when shares of Hipotekarna Banka reached a volume of €5.43 million through 74 transactions. Other companies that performed well during the first nine months of 2011 were Prva Banka Crne Gore (€5.38 million through 74 transactions - April) and Aluminum Plant (€3.50 million through 405 transactions September).
Graphic 9. MONEXPIF 8.000 7.000 6.000 5.000 4.000
Stock Exchange Indices
The new stock exchange uses two indices: MONEKS20 and MONEKSPIF. These indices were developed from the former Montenegrin stock market indices.
1.000 0 jan.11
MONEX20 Graphic 10. Turnover structure 6,2%
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 nine months of 2011 was recorded on January 24th at a level of 15,724 points, and the lowest value was recorded on September 5th at a level of 10,224 points. Variations in the value of the index have influenced all of the changes that are demonstrated by the shares that are represented in this index, particularly those belonging to the Electric Power Company, to the Aluminum Plant and to Telekom Montenegro.
Graphic 11. Turnover in PIF’s 23.725.599
The value of this index showed significant fluctuations including considerable growth and also considerable dips during the first nine months of 2011. It reached its highest level on February 15th with a total of 6,673 points. It reached its lowest point on September 12th with a recorded value of 4,624 points. The index value was influenced in such a way that a similar trend was evident in all of the six privatization investment funds.
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Privatization – Investment Funds on the Stock Exchanges
The total volume of trade that involved PIF shares during the first nine months of 2011 amounted to €2.53 million. This represented a drop of 47% when compared with the figures recorded during the same period in 2010 (about €4.79 million in trade volume). In total there were 2,639 transactions, and these involved a total number of 56.37 million shares taken from all six PIFs. The most actively traded shares during this period were Eurofond, whilst the least traded were MIG shares.
Published on Apr 5, 2013