The Montenegro Stock Exchange experienced a week of rising indices alongside modest trading volume, coinciding with the European Commission’s latest report indicating Montenegro’s progress toward developing a functional market economy.
The MNSE10 index, reflecting the value of the top ten companies, increased by 0.6% to reach 1,089.74 points, while the MONEX index rose by 0.5% to 16,416.32 points. Trading volume amounted to €75,470, marking a significant 5.6-fold increase from the previous week.
According to the European Commission, Montenegro saw strong economic growth and one-time revenues contributing to a small budget surplus last year. However, fiscal vulnerabilities remain due to high public financing needs, elevated interest rates and ongoing pressures on social spending. While improvements in the labor market were noted, structural issues persist.
To enhance the functioning of the market economy, the report recommends that Montenegro adopt additional fiscal measures aimed at reducing the budget deficit below 3% of GDP and bringing public debt closer to 60% of GDP by 2026. The Commission emphasized the need for efforts to diversify Montenegro’s narrow production base.
Looking ahead, the report suggests that Montenegro should continue implementing digital services for micro, small, and medium enterprises and prioritize the development of an interactive e-government platform for transactional services.
Stock movements
This week, shares of Plantaže rose by 14.3% to €0.20, while the Business Logistics Center (PLC) Morača gained 2.3% to €4.50, and Crnogorski Telekom increased by 1.9% to €2.14. The telecommunications company reported revenue and operating profit growth for the first nine months of the year compared to the same period last year, particularly in its optical network and mobile segments.
Conversely, shares of Crnogorski elektroprenosni sistem (CGES) fell by 5.4% to €1.39, and Elektroprivreda (EPCG) decreased by 0.7% to €5.46. Several companies, including Veleprodaja and TP Vinopromet Herceg Novi, maintained unchanged stock prices.
The week was also marked by the news that Montenegro recorded a surplus of €85 million in the first nine months, equivalent to 1.2% of estimated GDP, which significantly exceeds the planned deficit of €31.6 million.
Finance Minister Milojko Spajić highlighted in a parliamentary session that government reforms will positively impact pension increases. He noted that since the end of 2020, Montenegro’s GDP has doubled while the national debt has remained stable.
He stated, “The net debt was €3.8 billion, which it remains today. This undermines any claims regarding borrowing and illustrates the inaccuracies of those assertions.” Spajić added that GDP has grown from approximately €4 billion to €7.2 billion, with projections to reach €7.8 billion soon.
Spajić further emphasized that the “Europe Now 2” program is just the beginning of economic measures, intended to propel the economy and improve citizens’ living standards, setting the trajectory for Montenegro over the next three years.
