The index and modest trading marked the week on Montenegro Stock Exchange, coinciding with a boycott by retail chains, while the government extended the price limitation action until the end of April.
The MNSE10 index, reflecting the value of the top ten companies, increased by 2.9% to 1,124.28 points, while MONEX gained 2.4%, reaching 17,232.38 points.
Total trading volume was EUR 84.19 thousand, 4.7 times lower compared to the previous week.
Alternative Montenegro called on citizens to boycott supermarkets and stores in the country on Friday, claiming the action was successful. They argued that the prices are excessively high and that leading retail chains, through a price-fixing agreement, prevented citizens from fully benefiting from wage and pension increases.
The Executive Board of the Union of Free Trade Unions (USSCG) also called on its members to join the boycott, expressing their discontent over the sky-high prices of goods.
Prime Minister Milojko Spajić supported the boycott, urging retailers to maintain fair relations with consumers.
However, the Chamber of Commerce (PKCG) did not support any form of boycott from its members, regardless of the sector, calling it unjustified, as it directly impacts the economy that is not responsible for addressing the challenges targeted by such actions.
The government decided to extend the price-limiting measures until April 30. This action, initiated on September 6 of the previous year, aims to stop the price rise of essential food items.
Minister of Economic Development, Nik Gjeloshaj, stated that prices for the same items will be reduced as in the previous action, which ended in January. “All data shows that there was no inflation in the previous period, and prices have stabilized,” Gjeloshaj asserted.
He added that recent research revealed that many of the limited-price products in Montenegro are significantly cheaper than in Serbia or Croatia.
Among stock movements this week, the most significant increase was recorded in Autoremont shares, which rose by 233.3% to EUR 10. Plantaže shares grew by 20.8% to EUR 0.209, Luka Bar by 19.5% to EUR 0.313, and Port of Adria by 17.8% to EUR 0.2945. Željeznička infrastruktura also increased by 9.8% to EUR 0.0235.
Also in the green were Hotels and Tourism company Ulcinjska Rivijera and Marina Bar, gaining 20% to EUR 6 and 7% to EUR 3, respectively.
The biggest loss was recorded by Solana Bajo Sekulić, which dropped by 51.7% to EUR 1.11, while shares of Tara Aerospace Mojkovac fell by 16.7% to EUR 1, Imako Bijelo Polje by 5.9% to EUR 1.6, Jugopetrol by 1.1% to EUR 14.29, and Montenegrin electricity transmission system (CGES) by 0.7% to EUR 1.39.
No price changes were noted for Institut “Simo Milošević” (EUR 58), Veleprodaja (EUR 25), TP Centar Ražnatović (EUR 12.78), Elektroprivreda (EPCG) (EUR 5.5), and Poliex Berane (EUR 0.30).
EPCG signed a Memorandum of Understanding with London’s Alcazar Energy Partners II (AEP), initiating talks on the sale of electricity from the future Bijela wind farm in Šavnik, owned by AEP.
EPCG also held talks with representatives from the French company EDF to strengthen cooperation in the energy sector, particularly in the development of hydroelectric projects. This collaboration is critical for enhancing Montenegro’s energy security and supporting the country’s green energy transition.
Ongoing and future energy projects, particularly focusing on the development of hydroelectric systems in Montenegro, were discussed in these talks. EPCG has already signed a Memorandum of Understanding with EDF in mid-2023.
EPCG also provided updates on the ecological reconstruction of the Pljevlja Thermal Power Plant and the city’s district heating project, stating that progress was being made according to plan, with all participants dedicated to achieving the project goals.
Prime Minister Spajić called on Parliament to urgently adopt the budget. He stressed that despite efforts for compromise, some interests seem to aim to halt pensions, investments, and the EU path. “Such an attitude should not be tolerated,” Spajić said.
The World Bank (WB) team expressed concern over the failure to adopt Montenegro’s budget and the temporary financing, emphasizing the urgency of adopting the key document to meet the country’s obligations from previous loans.
Finance Minister Novica Vuković noted that a sustainable and developmental budget would be presented in Parliament as soon as possible, with hopes for swift adoption.
Meanwhile, the Ministry of Finance reported continued growth in budget revenues last year, reflecting the rising economic activity and improved living standards, mainly due to the increase in disposable income. According to preliminary data, budget revenues amounted to EUR 2.76 billion in 2024, or 37.8% of the estimated GDP, marking an increase of EUR 188.6 million (7.3%) compared to 2023.
The budget deficit for 2024 was EUR 230.9 million, or 3.2% of GDP, lower than planned by EUR 4.5 million. Additionally, the country achieved a current consumption surplus of EUR 49.9 million, exceeding the planned surplus of EUR 34.3 million by EUR 15.5 million.
