Low Turnover on Belgrade Stock exchange Dinar Continued Appreciation Against the Euro
The Belgrade Stock exchange closed in the red this week as both the BELEX15 and BELEXline lost in value. Namely the BELEX15 closed at 1.481,40 or -4,10% lower than the previous week and the BELEXline index closed at 2.667,54 or -2,80% lower than last Friday. This week Belex15 index declined below 1,500 points, a value it had in November 2006. Overall turnover decresed by -79,10% to reach RSD 364 million, although total number of transactions increased by 5,21%. This week Belgrade Stock exchange experienced low turnover of only EUR 4,7, which was average daily turnover this time last year. The most traded stock this week was Aik Bank (BSE: AIKB) which had RSD 57.4 million of turnover, followed by Alfa Plam (BSE: ALFA) with RSD 29 million and Zitopek ad Nis (BSE: ZTPK) with RSD 21 million of turnover. The largest price increase was recorded by Zitoprerada company from Novi Becej (BSE: ZPNB) which increased its price by 43,9%. IBT mutual fund initiated closing of blue chip positions on the market that influenced significant declines in prices of Serbian most traded companies such as ENHL, AIKB, SJPT, MTBN and AGBN. Overall turnover in bonds trading was EUR 745.424 for this week which was a significant decline in turnover with bond A2012 noting a 0,40% price increase.
Serbia postponed signing of agreement with Italian car maker Fiat for selling of Serbian car manufacturer Zastava till begining of September. Also, the signing of contract for selling a 40% state owned share in bus manufacturer Ikarbus is postponed for no clear reason. This week Serbia called a tender for selling a 51% share in national flag carrier JAT airways. A minimum price for the majority stake in JAT is EUR 51 million. However, Russian Aeroflot that has been intereste in this deal is unlikely to participate in the privatization of JAT due to high prices of oil at this moment.
Having assessed current economic developments, the NBS Monetary Policy Committee decided to keep the key policy rate unchanged at 15.75%. In the meantime, the Dinar appreciated against the Euro reaching the level from 2004.
market Data
BELEX15 (chart)
BELEXline (chart)
Turnover and Transactions (table)
Bonds - Prices & Yield Curve (table and chart)
Stocks
Most traded (table)
Most Advanced (table)
Most Declined (table)
Selected Stock Charts (charts)
Stock Screen (charts)
industry research - PEER Comparison
Agriculture (table)
Banking (table)
Chemicals and Pharmaceuticals (table)
Confectionary (table)
Construction and Engeneering (table)
Dairy Products (table)
Edible Oil and Oil Products (table)
Insurance (table)
Milling industry (table)
Mining (table)
Road Construction (table)
Telecomunications (table)
Trade and Distribution (table)
Water Bottling (table)
industry Comparison (table)
industry Monitor - (Median Rates for Selected Groups of Companies) (chart)
Stocks - Block Trading (table)
currencies - Median Rates (table)
Investment Funds (table, chart)
Regional Markets (table)
T - Bills Republic of Serbia (tables and charts)
Macroeconomics Quickview (table)
EUR/RSD Median Rate (chart)
MSCI Emerging markets Eastern Europe 2006, 2007 and 2008 Relative performance (chart)
Investment Funds (table)
Focus Premium Investment Growth Fund (chart)
Headlines
- Alas Holding company obtained ISO standard 9001:2000 sertificate
- New tender called for Genex hotels on the Kopaonikmountain
- Israeli company Kavim placed a bid for STUP from Vrsac, another transporter
- Minister Cvetkovic announced EUR 3-5 billion FDIs in Serbia this year
- Delta Maxi company bought Ela retailer from Montenegro
- Matroz company on auction 23rd September
- Dulic announces law changes to speed up issuance of construction permits, attract foreign investment
- Dinar hit a history high against the Euro
- By June 2008 Serbia's trade account deficit EUR 4,1 billion
- Electricity prices up 8,4% in Serbia, but still the cheapest in region
- 5 million of citizens applied for free shares
- Russian Aeroflot unlikely to take part in the privatization of JAT
- Serbian banking sector made a EUR 263 million profit by mid 2008
Stories
Jat Airways tender called. The privatization Agency has called a tender for the sale of a majority stake in Jat Airways. The minimum price for the 51 percent holding is EUR 51mn. According to the public announcement printed in daily Politika, potential buyers can send offers for a minimum 51 percent or maximum 70 percent stake in the company. According to the privatization Agency, the sale announcement will also be printed in the Financial Times. The deadline for applications is October 24, and the auction guarantee is EUR 2mn. The tender documentation can be bought until September 26 for EUR 25,000. In order to participate in the tender the bidder must have an Air Operator’s Certificate (AOC), and, along with its affiliated companies have at least 1.3mn travelers, and a consolidated balance of a minimum EUR 200mn. If the bidder is a consortium, one member must have at least a 51 percent interest in the consortium, and that same consortium leader must meet all the tender conditions. According to the Open Air Agreement that Serbia signed, companies not registered in the European Union or Serbia cannot hold more than a 49 percent stake in JAT.
GDP growth in Serbia to reach 6.2 %. UniCredit Group has estimated that the average growth rate of the Serbian GDP by 2010 will amount to 6.2 percent.This projection is above the average figures for the region of southeastern Europe. Economists with UniCredit expect a relatively high growth rate of the GDP regionally, with 6.8 percent in Romania, 6.2 percent in Serbia, six percent in Bulgaria, 5.8 percent in Bosnia-Herzegovina, and four percent in Croatia. The high deficit in the balance of payments, the dependence of the growth on outside sources of investments, and growing inflation pressures indicate that southeastern Europe is exposed to similar challenges as the Baltic states. There, the report said, the economic situation has deteriorated due to a constantly increasingly poor macroeconomic balance, severe conditions of financing, and an overheated real estate market.
Sale of Ikarbus postponed to July 17th. Manager of Belgrade´s based bus maker Ikarbus Srecko Nijemcevic said to Tanjug that the contract on the sale of this company to Russia´s Avtodetal Service should have been signed by June 17th; however, the privatization Agency has extended the deadline by July 17th.
Serbia invites bids for 63% of ball bearing maker FKL. The privatization Agency has invited bids for just under 63% of Temerin-based ball bearing manufacturer Fabrika Kotrljajucih Lezajeva I Kardana (FKL), according to a press release from the sell-off authority. Eligible to bid are companies or consortia led by companies that have produced ball bearings or agricultural machinery for a minimum of three years and reported at least EUR 14 million in operating revenues from the business in 2007. tender documents will be available from August 11 at the price of EUR 8,000, and the deadline to submit binding bids is October 13. A deposit or a bid bond of EUR 200,000 is also required. FKL, the biggest ball bearing maker in Serbia, posted a RSD 7.53 million net profit in 2007 on operating revenues of RSD 898.1 million, according to the agency’s website.
Preliminary contract with Fiat on car maker Zastava pushed back to August. A preliminary contract between Italian automobile company Fiat and authorities in Serbia on joint investment in Kragujevac’s car maker Zastava Automobili, whose signing was earlier announced for Thursday, is now expected to be inked in August, local media reported over the weekend. The delay is due to Fiat’s request that Zastava start using technical water in production instead of expensive drinking water, ensure new energy infrastructure and remove “radioactive lightning rods” from its plant, Kragujevac Mayor Veroljub Stevanovic said. According to Beta’s unnamed sources in the government, the preliminary contract should be up for the government’s approval on Thursday. In late April, Fiat signed a memorandum of understanding with the government under which it would invest EUR 700 million in Zastava, get a 70% stake, and start producing a new car model in Kragujevac by the end of 2009 and another one by the end of 2010. The state would invest EUR 100 million by the end of 2011 and keep a 30% holding for at least ten years.
Key Policy Rate Unchanged at 15.75%. Having assessed current economic developments, the NBS Monetary Policy Committee decided to keep the key policy rate unchanged at 15.75%. The next MPC meeting is scheduled for 28 July 2008.
Stocks - Full report (table)
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28 July-01 Aug 2008 Sinteza Weekly.pdf, 388 Kb
