This week on the Montenegro Stock Exchange, both the index and trading volume showed a decline, as Montenegro officially joined the Single Euro Payments Area (SEPA), and government officials presented the key points of next year’s budget.
The value of the top ten companies index, MNSE10, dropped by 1.7% to 1,058.7 points, while MONEX fell by 1% to 16,044.84 points. The total trading volume this week amounted to €71,680, marking a 16% decrease from the previous week.
According to the Central Bank of Montenegro (CBCG), Montenegro officially became a part of SEPA on Thursday, after significant efforts to align the country’s payment system and regulations with European Union (EU) standards. This makes Montenegro the first Western Balkan country to join the SEPA area, fulfilling one of the key goals in its path towards EU membership.
CBCG Governor Irena Radović highlighted that SEPA integration represents a major milestone in Montenegro’s financial integration into the EU, opening up economic opportunities and providing visible benefits for both citizens and the economy. Prime Minister Milojko Spajić emphasized that joining SEPA was a small but significant step for the country, particularly in resolving issues with international money transfers. Minister of Finance, Novica Vuković, also stressed the economic opportunities and tangible benefits it brings to citizens and the economy.
This week saw the largest losses on the Montenegro Stock Exchange by Montenegroberza and Kotor’s Napredak, both of which fell by 20% to €480 and €0.0555, respectively. Other significant decliners included Elektroprivreda (EPCG), which dropped 2.6% to €5.32, and Crnogorski elektroprenosni sistem (CGES), which lost 2% to €1.37.
A major development during the week was the groundbreaking ceremony for the Gvozd wind farm in the Krnovska plateau, marking the first major production facility that EPCG will build in over 40 years. The project, funded by an EBRD loan, will have an installed capacity of 54.6 MW and is expected to produce around 150 GWh of electricity annually, supplying power to approximately 25,000 households.
Additionally, EPCG shareholders selected the Podgorica-based company BDO for this year’s financial audit, with the firm committing to complete the audit by March and April next year. CGES also signed a €950,000 technical support grant agreement with the French Development Agency (AFD) and RTE International to modernize Montenegro’s power transmission infrastructure and support renewable energy integration.
The week also saw a 5% drop in the shares of Port of Adria to €0.19, a 0.4% decrease in the shares of Luka Bar to €0.25, and a 0.5% decline in Crnogorski Telekom’s shares to €2.14. On the other hand, Poliex saw a 44% increase in share price, rising to €0.363, followed by Montenegro Express Group, which saw a 20.2% increase to €0.196.
In government news, Finance Minister Novica Vuković introduced the 2024 budget, highlighting an expected real GDP growth of 4.8% and a reduction in inflationary pressures. The total budget revenue is projected at €2.88 billion, while total expenditures will be €4.03 billion, with a 16% increase from this year.
Prime Minister Spajić also commented on the country’s GDP growth, noting that it nearly doubled since January 2021. Additionally, a report from the Regulatory Agency for Energy (REGAGEN) indicated that electricity bills for households with dual tariff metering may increase by €1 next year due to adjustments.
Vuković also stated that pension cuts were not part of the implementation of the “Evropa Sad 2” program and reiterated the government’s commitment to keeping electricity prices stable despite rising network charges.
In foreign investment news, the Council of Foreign Investors (SSICG) published its annual White Book, which showed a slight improvement in the ease of doing business index after two years of decline, now standing at 6.5.
The week also saw the Agency for the Protection of Competition (AZK) uncover a cartel agreement between One, M:tel, and Crnogorski Telekom over raising the minimum prepaid recharge to €5. AZK has prohibited the implementation of this agreement, and the operators have the right to appeal the decision before the Administrative Court.
