The Montenegro Stock Exchange saw a mixed performance this week, with indices moving in opposite directions and trading volumes significantly higher, while the Ministry of Finance urged urgent adoption of the state budget to prevent harm to the country and its citizens.
“The urgent need for the Assembly to adopt the state budget as soon as possible is critical to ensure fiscal stability, continued reforms, and fulfillment of international obligations,” the Ministry said in a statement. The Ministry’s interim financing decree for January provides the necessary funds for the government to function during the month.
The Ministry further emphasized that this year poses significant challenges, and the failure to adopt the budget and interim financing could significantly hinder the functioning of the state and jeopardize the timely funding of obligations. Timely action is crucial to preserving economic prosperity and stability.
“Interim financing reduces available funds for planned reforms, capital projects, and the regular activities of institutions,” the Ministry added.
The index of the top ten companies on the Montenegro Stock Exchange, MNSE10, dropped by 0.2% to 1,090.51 points, while the MONEX index gained 0.9% to 16,702.14 points.
Trading volume reached €72.95 thousand, which was 20 times higher than the previous week.
Shares of the “Simo Milošević” Institute rose by 46.3% to €51.87.
The government announced that representatives from the executive branch and shareholders with significant stakes in the “Simo Milošević” Institute, as well as the Hotel-Tourism Enterprise (HTP) Vile Oliva, have reached a high level of agreement on further steps for the institute’s rescue and development.
The government also stated that new negotiations took place ahead of the next shareholders’ meeting, scheduled for Tuesday, where the final plan for the company will be presented.
A group of small shareholders, gathered around the Montenegrin Association of Small Shareholders (CAMA), began offering their shares in the Institute at a price of €100 per share.
HTP Vile Oliva is expected to purchase around 1.5% of shares from the minority shareholders of the Institute on Monday, at €58 per share, several market sources confirmed. This deal is likely to be concluded a day before the shareholders’ meeting, where voting on the restructuring plan and capital increase for the state-owned enterprise will take place.
Shares of the Institute have been actively traded in recent days, with daily increases of nearly 10%, the maximum allowed.
The government holds 56.5% of the Institute’s shares and needs an additional 10.2% to secure a two-thirds majority, allowing it to make independent decisions regarding the company.
This week, shares of Jugopetrol increased by 2.9% to €14.45.
Shares of Plantaže dropped by 6.8% to €0.177.
The shares of the Montenegrin Transmission System (CGES) and Montenegrin Telecom remained unchanged at €1.4 and €2.24, respectively.
The week was also marked by the announcement that the dividend payout to shareholders of the Business Logistics Center (PLC) Morača began on Monday.
The total gross dividend payout is €400,000, or €0.2109 per share.
