Turnover, realized through 29 transactions, amounted to 556 thousand euros and was seven times higher than last week’s
The growth of indices and turnover marked the week in which the International Monetary Fund (IMF) raised forecasts for the growth of the Montenegrin economy for this year, and the European Commission (EC) published a report on Montenegro. The value indicator of the ten best companies MNSE10 increased by 0.3 percent to 846.33 points, and MONEX by 0.2 percent to 11,966.77 points.
The turnover, realized through 29 transactions, amounted to 556 thousand euros and was seven times higher than last week. The largest share of turnover was held by the shares of the Montenegrin Electric Transmission System (CGES), 0.38 percent of which was bought by the state on the stock market on Monday. In a block transaction, the state bought 550.05 thousand CGES shares for a total of 485.14 thousand euros, or 88.2 cents per share.
On the Montenegro Stock Exchange, shares of Luka Bar rose by nine percent to 55 cents and Sveti Stefan Hotel by six percent to 3.51 euros this week, while the shares of Budva Riviera remained unchanged at 6.51 euros. Shares of Zetatrans fell 7.4 percent to 88 cents, CGES 1.1 percent to 91 cents, and Elektroprivreda 2.7 percent to 3.6 euros. Shares of Jugopetrol, Port of Kotor and Port of Adria were also traded, which on Friday cost 11.5 euros, or seven euros and 8.1 cents.
In the latest October forecasts, the IMF increased the growth estimate of the Montenegrin economy this year to 7.2 percent. In April, the IMF forecast the growth of Montenegrin gross domestic product of 3.8 percent for this year.
In the new October report of the IMF, in the title of which the emphasis is placed on the fight against the crisis caused by the cost of living, it is stated that the Montenegrin GDP should increase by 2.5 percent in the next year. This is somewhat weaker than the April forecast, when GDP was predicted to grow by 4.2 percent.
In the report, which the Mina-business agency had access to, the experts of the IMF kept the estimate of the growth of the Montenegrin economy in 2027 at three percent from April. GDP growth last year was 13 percent. The week was also marked by the EC report, according to which Montenegro has made good progress when it comes to economic criteria and is moderately prepared for the development of a functional market economy.
“After experiencing a sharp recession in 2020, the economy recorded a strong recovery last year and continued to grow at a steady pace in the first half of this year as the lifting of covid-19 restrictions boosted both domestic and foreign demand”, the report said.
The EC said that the recovery led to an increase in income and a very large improvement in the budget balance.
“The consequences of the Russian war against Ukraine have so far been limited, despite the very significant contribution of these two countries to Montenegrin tourism in the previous period. Driven by the rise in global commodity prices, inflation has increased significantly”, the EC said.
It is added that the government has adopted an ambitious program of fiscal reforms called Europe Now to support recovery after the pandemic and provide fiscal stimulus measures that ease the burden on households due to rising energy and food prices.
“External imbalances have decreased significantly thanks to the recovery of tourism, while the situation on the labor market has begun to improve, even if structural problems still exist”, the report concluded.
As they specified, the banking system remained stable, and non-performing loans did not increase significantly this year after the expiration of the moratorium on loans adopted last year in the context of the corona crisis.
“Montenegro has made some progress and is moderately prepared to deal with competitive pressure and market forces within the European Union (EU)”, the report stated, Dan writes.
