This week on the Montenegro Stock Exchange, a modest rise in the index and a notable increase in trade volume were observed. This activity coincided with the Montenegrin Parliament’s approval of the revised national budget for this year, as well as amendments to several laws needed to implement the Fiscal Strategy and the “Europe Now 2” program.
The MNSE10 index, which tracks the top ten companies on the Montenegro Stock Exchange, slightly increased to 998.85 points, while the MONEX index edged up to 15,101.47 points.
Trade volume surged to 293,040 EUR, marking a 17-fold increase compared to the previous week.
On Friday, lawmakers approved amendments to this year’s budget, as well as changes to laws concerning VAT, corporate income tax, personal income tax, excise duties, and labor regulations.
Amendments to the Law on Social Security Contributions were also passed, along with a law for the write-off of interest on overdue tax obligations.
Finance Minister Novica Vuković explained that changes to the Personal Income Tax Law aim to expand the tax base by including two new sources of income, improve existing legal provisions that caused confusion among taxpayers, and increase the threshold for flat-rate taxation of self-employed income.
The amendments to the VAT Law focus on reforming the reduced VAT rate in accordance with EU Directive 2006/112/EC, introducing a second reduced VAT rate of 15 percent.
The changes to the Excise Duties Law are intended to generate new revenue by broadening the range of products subject to excise, including non-carbonated beverages with added sugar and “still” wines. These changes also aim to align Montenegrin regulations with EU standards and ensure stable, sustainable excise revenue, which is crucial for macroeconomic stability.
Regarding the Corporate Income Tax Law, Vuković noted that it introduces tax exemptions for companies reinvesting profits in agricultural projects or other agricultural entities, allowing them to deduct reinvested amounts from their taxable income.
Shares of Solana “Bajo Sekulić” surged by 178 percent to 1.70 EUR, while shares of Hipotekarna Banka increased by 11 percent to 100 EUR.
The stock prices of Crnogorski elektroprenosni sistem (CGES) rose by 3.1 percent to 1.33 EUR, Crnogorski Telekom by 2.4 percent to 2.15 EUR, and Luka Bar by 3.2 percent to 0.26 EUR.
Conversely, shares of Montecarga dropped by 17.8 percent to 0.30 EUR, Marine Bar by 16 percent to 2.52 EUR, and Zetatrans slightly decreased to 1.03 EUR.
The stocks of Veleprodaja Nikšić and Port of Adria remained unchanged at 25 EUR and 0.155 EUR, respectively.
This week, representatives from Elektroprivreda (EPCG) and the German Development Bank (KfW) signed a 40 million EUR loan agreement for financing the installation of unit A8 at the Perućica Hydroelectric Power Plant, part of the third phase of the reconstruction and expansion project. The loan, secured through the new European Fund for Sustainable Development Plus (EFSD+), features a 15-year repayment period with a five-year grace period.
A new promotional campaign called “Limited Price” was launched in major markets this week. The campaign, covering 71 products, will run until January 31 of the following year.
Central Bank Governor Irena Radović has proposed Gordana Kalezić and Milan Remiković as new deputy governors. The Central Bank of Montenegro (CBCG) has published their biographies on its website.
In August, total trade volume on the Montenegro Stock Exchange amounted to 691,320 EUR, a 44.52 percent decrease compared to July. Compared to August of the previous year, the volume was up by 24.51 percent. The average daily trade volume last month was 31,420 EUR. Trading occurred on 22 days, with 84 transactions completed. Of this, 493,650 EUR was traded on the prime market, with 26 transactions.
