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FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2006<br />
MONTENEGRO STOCK EXCHANGE<br />
Dejana Suskavcevic<br />
CEO<br />
The legal regulation, tax privileges and the<br />
exact status for foreign investors as well as<br />
for national ones, are only some of the<br />
mechanisms that attract new participants<br />
every day.<br />
Although young, the Montenegrin stock<br />
market is characterized by the extraordinary<br />
performances of development and the<br />
achieved results. Through the growth of the<br />
MOSTE index, that has continued growing,<br />
the multiple growth of the daily number of<br />
the transactions and the profit gained, the<br />
year has been marked with a great numbers<br />
of investors, foreign ones as well as national<br />
ones that have significantly influenced the<br />
liquidity of the market. The opening of the<br />
Montenegrin companies for the public eye<br />
and the arrival to the elevation of the official<br />
market represent the positive tendencies of<br />
our market of securities the best. The legal<br />
regulation, tax privileges and the exact status<br />
for foreign investors as well as for national<br />
ones, are only some of the mechanisms that<br />
attract new participants everyday.<br />
The Montenegro Stock Exchange (MSE) is<br />
the first institution concerning the<br />
Montenegrin stock market and was founded<br />
in 1993. We at the MSE are paying particular<br />
attention to the further development,<br />
strengthening, introduction of the new market<br />
material, strengthening of the supervisory<br />
and controlling function of the MSE,<br />
strengthening of the structure of the staff and<br />
education of the relevant participants; all of<br />
this with a goal of connecting with other<br />
related institutions and markets.<br />
HISTORY AND DEVELOPMENT<br />
The Montenegro Stock Exchange (MSE) was<br />
set up in June 1993 pursuant to the Act on<br />
Money and Capital Markets (1989). The first<br />
founder-members were the four Montenegrin<br />
banks: Montenegrobanka a.d. Podgorica,<br />
Pljevaljska banka a.d. Pljevlja, Beranska<br />
banka a.d. Berane, Hipotekarna banka a.d.<br />
Podgorica, and the Republic of Montenegro,<br />
i.e. Montenegrin Agency for Economic<br />
Restructuring and Foreign Investments.<br />
On the constitutional meeting held on July 7,<br />
1997, the MSE harmonized its operation with<br />
the Exchange, Exchange Operations and<br />
Exchange Intermediaries Act. Another three<br />
banks and two insurance companies joined<br />
the founder members of the Exchange:<br />
Podgoricka banka a.d. Podgorica,<br />
Jugobanka a.d. Podgorica, Niksicka banka<br />
a.d. Niksic, Lovcen osiguranje a.d.<br />
Podgorica and Swiss osiguranje a.d.<br />
Podgorica.<br />
In order to increase its share capital, the<br />
MSE issued additional shares, upon the<br />
approval of the Federal Commission for<br />
Securities and Financial Markets. The shares<br />
were subscribed and paid in by several<br />
Yugoslav banks, as well as the Federal<br />
Government.<br />
In order to coordinate with the Law on<br />
Securities of the Republic of Montenegro,<br />
the MSE issued third issue of shares in total<br />
amount EUR 120,372. The importance of<br />
this issue which is sold successfully with<br />
100% is very important for further<br />
development of capital market of<br />
Montenegro from the reason of appearing<br />
new 10 shareholders as owners of the MSE<br />
from banking sector, insurance companies<br />
and private companies from all spheres of<br />
economy. So now, the MSE has 28<br />
shareholders.<br />
FUTURE OUTLOOK<br />
In 2006, the MSE has the following plans:<br />
• In the middle of March, the MSE will start<br />
using a web monitoring application.<br />
Shareholders, investors and all interested<br />
people will be able to watch trading on the<br />
MSE on-line in real time,<br />
• A new design of web site will be instaled<br />
before the April of 2006,<br />
• At first half of 2006, the MSE will introduce<br />
a new index which will cover old currency<br />
saving bonds,<br />
• In the beginning of June 2006, the Forth<br />
Adriatic Business and Investment Summit<br />
will be held, organized by the MSE in<br />
cooperation with the Government of<br />
Montenegro and Argonauts Consultants Ltd.<br />
from Cyprus; and<br />
• In September of 2006, the MSE will start a<br />
book on the topic: “The History of<br />
Shareholding in Montenegro”.<br />
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