A slight decline in the index and modest trading volume marked the week on the Montenegro Stock Exchange, during which the government announced that two bids were received for the concession of airports.
The value indicator of the ten largest companies on the Montenegro Stock Exchange, MNSE10, slightly decreased to 1,163.81 points. Similarly, the MONEX index also weakened slightly, dropping to 17,382.18 points.
Trading volume totaled EUR 29.21 thousand, which is 1.5 times lower than the previous week.
Two companies, Incheon International Airport Corporation and Corporacion America Airports S.A., submitted bids for the concession of Montenegrin airports.
The commission will submit a report on the evaluation of the received bids to the relevant ministry within 30 days of the opening of the bids.
This week, the biggest loss was recorded by Autoremont, which dropped 12.5% to EUR 7, followed by Crnogorski Telekom, down 2% to EUR 2.3, Napredak, which fell 2.3% to EUR 0.042, and Luka Bar, which decreased 0.3% to EUR 0.33.
Crnogorski Elektroprenosni Sistem (CGES) rose by 0.8% to EUR 1.2.
Stock prices remained unchanged for the Institut “Simo Milošević” at EUR 58, Veleprodaja at EUR 25, and Port of Adria at EUR 0.27.
The government and the United Arab Emirates (UAE) agreement regarding cooperation in tourism and real estate development remained a key focus this week.
According to reports, European Commissioner for Enlargement, Oliver Varhelyi, responded to President Jakov Milatović’s request for an official opinion on the alignment of this agreement with EU law. The response suggests that, at first glance, the agreement does not violate EU law or the Stabilization and Association Agreement (SAA) between Montenegro and the EU. However, it notes that the improper application or interpretation of certain provisions could lead to violations, particularly in public procurement, and possible discrimination against European and Montenegrin companies in favor of potential UAE investors.
Milatović signed the Law on the Confirmation of the Agreement on Economic Cooperation between Montenegro and the UAE, but returned the one concerning tourism and real estate development to the parliament for reconsideration.
In contrast, Prime Minister Milojko Spajić believes there are no obstacles to the approval of the agreement on tourism and real estate development in the parliament, with much stronger support than the first time.
From corporate news, it was noted that representatives of Elektroprivreda Crne Gore (EPCG) have notified 8B Capital representative Igor Šamiz of their intent to unilaterally terminate the lease contract for Željezara’s steel mill and forge operations.
EPCG is uncertain how long the procedure will take, as the relevant court is in Lugano.
The Swiss company has not made the lease payments, amounting to EUR 31,000 per month, nor has it taken over 150 workers as stipulated in the contract, even after seven months since the agreement was signed.
The week also saw news of a positive result for the Montenegrin banking sector at the end of Q1 2023, with all 11 commercial banks reporting a combined profit of EUR 34.17 million.
Additionally, the Tax Administration (PU) reported a gross revenue collection of EUR 599.2 million in the first four months of this year, an increase of EUR 5.4 million compared to the same period last year.
The PU emphasized that operational activities across all segments of its responsibilities will intensify during the summer tourist season to ensure a stable flow of budgetary funds.
The government approved the Program for Improving Economic Competitiveness for this year, with a budget of EUR 3.5 million. The aim of the program is to further develop micro, small, and medium-sized enterprises and increase their productivity, contributing to the creation of a more resilient, competitive, and export-oriented economy.
Total trading volume on the Montenegro Stock Exchange in April amounted to EUR 496.39 thousand, a decrease of 46.12% compared to March.
As of April 30, the market capitalization of shares listed on the Montenegro Stock Exchange amounted to EUR 2.64 billion, reflecting a 4.88% increase compared to the same period last year.
