The Montenegro Stock Exchange (Montenegroberza) saw a decline in its index and higher trading volume last week, coinciding with the World Bank’s announcement that Montenegro is expected to achieve a 3% economic growth this year, driven primarily by private consumption and investments.
The value of the ten leading companies on the Montenegro Stock Exchange, MNSE10, dropped slightly to 1,167.49 points, while MONEX fell to 17,428.16 points.
Trading volume, shortened due to the holiday, amounted to €44,930, which was 2.2 times higher than the previous week.
“After the pandemic, Montenegro experienced significant growth, which slowed to 3% last year, but it is expected to remain at the same level this year amidst global uncertainties,” states the World Bank’s regular economic report for the Western Balkans.
Although the temporary shutdown of the Pljevlja Thermal Power Plant will increase electricity imports, it is expected that rising real net wages, credit growth, and a strong labor market performance will maintain economic momentum.
Stock prices for the Kotor-based company Autoremont fell by 20% to €8, while the price of shares in the Montenegrin Transmission System (CGES) dropped slightly to €1.19.
Shares of Electric Power Company (EPCG) decreased slightly to €5.36. EPCG announced that their projects EPCG 3000+/500+ and 5000+ brought a total profit of €4.96 million to consumers from April 1 last year to the end of March. So far, over 7,000 users have been included, with 6,290 users having their power systems tested and already producing electricity. Total production from April to March amounted to 48.68 million kWh.
These results have led to a total consumer savings of €4.96 million, representing an average annual savings of €788.41 per consumer.
Shares of the Bajo Sekulić Saltworks rose by 0.8% to €1.33, while the Port of Bar’s stock price slightly increased to €0.33.
Shares of Crnogorski Telekom remained unchanged at €2.35, as did the stock price of the “Simo Milošević” Institute at €58, and the Hipotekarna Banka at €9.55.
Shares of Jugopetrol maintained their previous week’s price of €14.85. Jugopetrol shareholders are expected to make a decision regarding profit distribution at the regular General Assembly on June 4. The agenda also includes the adoption of financial reports, including the independent auditor’s report for the previous year.
The week was marked by data from the Ministry of Finance, showing that budget revenues in the first quarter continued their upward trend, amounting to €580.4 million or 7.3% of the estimated GDP. This is €4.7 million more than in the same period last year.
The Ministry of Finance reported that the most significant growth was recorded in VAT revenues, which amounted to €282.3 million, an increase of 11.9% compared to the same period last year. This significant growth is primarily the result of higher economic activity, investments, and a reduction in the informal economy.
The week also saw Montenegrin President Jakov Milatović signing the Law on the ratification of the Economic Cooperation Agreement between the Governments of Montenegro and the United Arab Emirates (UAE). However, he returned the Tourism and Real Estate Development Cooperation Agreement to the Parliament for reconsideration.
Regarding the Law on the Cooperation Agreement in Tourism and Real Estate Development, Milatović returned it to the Parliament for reconsideration due to numerous open issues related to the Agreement, which have not been adequately addressed by the government. The main concerns involve deviations from constitutional provisions related to ensuring free competition and equal market conditions, as well as suspending the application of Montenegrin laws on public procurement, tenders, and state property, with further changes to other Montenegrin legislation anticipated for the implementation of the Agreement.
The NGO Network for the Promotion of the Civil Sector (MANS) called on MPs to reject the agreement with the UAE unless anti-corruption clauses and precise mechanisms to prevent money laundering are incorporated.
“Although the regime was formally removed nearly five years ago, key figures who were previously hidden, covered up, or part of structures that tolerated organized crime and corruption continue to make decisions on the most important security and financial matters in the country,” stated MANS in their statement.
