Endorsement of Key Deals with EU, Russia Continues To Lift Serbian Shares

“Today the indices rose again, probably the ratification of the energy agreement with Russia and the agreement with the EU has sent positive signals to investors,” a Belgrade-based broker told SeeNews. “We hope this rise will continue.”

The blue-chip BELEX15 index on Wednesday closed up 1.16% at 1,326.82 after gaining 0.50% a day earlier and breaking a nine-day losing streak. The index has lost some 43% since the beginning of the year.

The broader BELEXline rose 0.93% to 2,400.97, following a 0.72% rise on Tuesday. The joint SRX index of the bourses in Belgrade and Vienna added 1.89% to 776.88 points.

Total BELEX turnover slipped to 68 million dinars ($1.3 million/ 889,100 euro) from 73 million dinars on Tuesday.

Chemical products wholesaler Agrovojvodina Komercservis soared 19.99% to 3,361 dinars in 14.2 million dinars of turnover, the highest for the day.

“As there was only one transaction, it was probably just an exchange of stakes between some of the company shareholders,” the broker said.

Blue-chip Metals Banka followed in terms of turnover with 9.2 million dinars. Its share price rose 1.81% to 27,919 dinars.

On Tuesday, Serbia's parliament ratified the country's Stabilisation and Association Agreement with the European Union, the first formal step towards membership. The chamber also ratified an energy agreement with Russia, under which Serbia sells 51% of its oil monopoly Naftna Industrija Srbije (NIS) to Russian gas giant Gazprom for 900 million euro in cash and investment and gets included in the multi-billion euro South Stream gas pipeline project of Russia's Gazprom and Italy's Eni.

($=76.4791 euro)