Download - FEAS

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2007
MONTENEGRO STOCK EXCHANGE
Dejana Suskavcevic
CEO
Continuous development of our market is
the basis of the future of the Montenegrin
Stock Exchange, a future in which
Montenegro Stock Exchange strongly
believes.
2006 showed that the things that happened
on the Montenegro Stock Exchange are the
alpha and the omega of lives of Montenegrin
citizens. 2005 was turning point and
represents a boost of the Montenegrin
capital market, 2006 definitely showed that
stock market fever is not a temporary thing
but the most exploited topic, and a proves
the need for investing in all of us.
The Previous year exhibited that what
happened on the stock exchange is in direct
relation with the political status of the
country, the macro-economic situation and
accession and membership in numerous
international institutions. The first big boost of
prices on the Montenegro Stock Exchange
was recorded after the referendum on the
legal status of Montenegro was conducted.
After independence was declared, prices of
securities have, to put it simply 'gone wild'
i.e. this act has been accepted in a positive
way by both local and foreign investors.
Further, accession of Montenegro into the
Partnership for Peace was also a long
desired prerequisite for investors.
In the last part of 2006 the Montenegro Stock
Exchange has achieved great results.
Transactions of over EUR 241million through
more than 50,000 transactions have proved
that all expectations have been met. At the
beginning of the year a new service tool for
monitoring stock market transactions in real
time via Internet came out as our product,
and at the end of the year users of mobile
phones were given the possibility to check
information on valid prices of shares on the
stock exchange via a message service.
A Document of Association with the Stock
market of Vienna was signed, as well as
many other coordinated activities with
institutions from abroad were employed and
had the goal of establishing of our market on
the international map in order to attract more
new investments, as well in order to
introduce new market material. 2006 ended
with 22 companies and the bonds of old
currency savings being listed, this in turn
compares very well in light of the statistics of
more developed markets.
In 2007 I expect a very dynamic atmosphere
on stock exchange. Incorporation of new
institutional investors, investment and
pension funds, new stock market mediators
with foreign property, and the interest of
foreign companies to be listed on the
Montenegro Stock Exchange, followed by
the announcement of the issuing of
corporate bonds, with an attractive tax policy
followed by appropriate legal regulation, is
the basis of the development path of the
capital market of Montenegro. Continuous
development of our market is the basis of
the future of the Montenegrin Stock
Exchange, a future in which Montenegro
Stock Exchange strongly believes.
HISTORY AND DEVELOPMENT
The Montenegro Stock Exchange was set
up in June 1993 pursuant to the Act on
Money and Capital Markets (1989). The first
founder-members were the four Montenegrin
banks: Montenegrobanka a.d. Podgorica,
Pljevaljska banka a.d. Pljevlja, Beranska
banka a.d. Berane, Hipotekarna banka a.d.
Podgorica, and the Republic of Montenegro,
i.e. Montenegrin Agency for Economic
Restructuring and Foreign Investments.
On the constitutional meeting held on 7 July
1997, the Montenegro Stock Exchange
harmonized its operation with the Exchange,
Exchange Operations and Exchange
Intermediaries Act. Another three banks and
two insurance companies joined the
founding–members of the Exchange:
Podgoriãka banka a.d. Podgorica,
Jugobanka a.d. Podgorica, Niksicka banka
a.d. Niksic, Lovcen osiguranje a.d.
Podgorica and Swiss osiguranje a.d.
Podgorica.
In order to increase its share capital,
Montenegro Stock Exchange issued
additional shares, upon the approval of the
Federal Commission for Securities and
Financial Markets. The shares were
subscribed and paid in by several Yugoslav
banks, as well as the Federal Government.
In order to comply with The Law on
Securities of the Republic of Montenegro,
Montenegro Stock Exchange issued a third
issue of shares in total amount 120,372,
EUR. The importance of this issue which
was sold successfully with 100%
subscription was instrumental in the further
develompent of capital market of
Montenegro because with the sale of this
issue 10 new shareholders emerged as
owners of the Montenegro Stock Exchange
from banking sector, insurance companies
and private companies from all spheres of
economy. As of today, MSE has 24
shareholders.
FUTURE OUTLOOK
In 2007, Montenegro Stock Exchange has
the following plans:
• In the begining of February, the
Montenegro Stock Exchange will introduce a
new index MOSTE Intuitivo. It is index of
expectation of market experts.
• At the end of February will be
implemented new version of the trading
sistem MSETS.
• Montenegro Stock Exchange will organize
the First Annual Conference.
• We expect to become a Corespondent
member of FESE.
• Real-time information will be shown by
Bloomberg
PAGE 108