This week on the Montenegro Stock Exchange, marked by modest index growth and low trading volume, Standard & Poor’s (S&P) upgraded Montenegro’s credit rating from B to B+, with a stable outlook.
The MNSE10 and MONEX indices, which track the top ten companies on the Montenegro Stock Exchange, increased by 0.3% to 989.18 points and 15,049.36 points, respectively. Trading volume amounted to €16,500, ten times lower than the previous week.
The Ministry of Finance stated that the credit rating upgrade is a confirmation of the success of the government’s economic policies, noting that this is the second consecutive upgrade in just ten months. The previous upgrade had improved the economic outlook for Montenegro from stable to positive in March.
Key factors for the credit rating improvement included a significant reduction in public debt, strong nominal GDP growth and ongoing progress in structural reforms associated with Montenegro’s EU accession process. The recovery of the tourism sector, which has strengthened Montenegro’s balance of payments, also played a role.
The latest S&P report shows that Montenegro’s rating is supported by strong growth prospects, long-term benefits from EU accession-related structural reforms, and relatively low debt servicing costs. S&P analysts noted that the government’s goals include advancing EU accession negotiations and intensifying the fight against corruption, which is encouraging as Montenegro aims to become the next EU member state.
Prime Minister Milojko Spajić remarked that the credit rating upgrade would make Montenegro more attractive to serious investors, while Finance Minister Novica Vuković noted that it indicates the country is on the right track.
The week on the Montenegro Stock Exchange was relatively quiet, with trading involving several companies. Port of Adria and Zetatrans saw increases of around 10% to €0.155 and €1.04, respectively, while Plantaže shares fell by 2.5% to €0.156. Shares of Veleprodaja, TPC Ražnatović, and Profit APP International remained unchanged at €25, €12.78, and €18.18, respectively.
The Ministry of Finance also reported a budget surplus of €42 million for the first seven months of the year, instead of the planned deficit, which is €220.3 million better than expected. Total budget revenues by the end of July amounted to €1.57 billion. The government approved a decision to cap prices on over a thousand essential goods in supermarkets, effective until January 31 of the following year. Small markets are exempt from this decision.
In other business news, the Port of Bar announced a sale of 2,480 tons of coal at a starting price of €129.15 per ton, totaling €320,160. The call for bids is open until September 25.
The Electric Power Company of Montenegro (EPCG) reported a stable energy situation despite significantly lower domestic electricity production compared to consumption. Additionally, the government has approved EPCG to borrow €10 million from the Investment and Development Fund (IRF) to finance the Solari 5000+ 70MW project.
