Stock indices on Montenegro Stock Exchange rose in the first working days of the year, with the focus on the “Simo Milošević” Institute, while the Parliament President, Andrija Mandić, scheduled a parliamentary session for January 21 to discuss the state budget.
The index of the top ten companies on Montenegro Stock Exchange, MNSE10, increased by 0.6% to 1,092.21 points, while MONEX rose by 0.8% to 16,560.91 points.
In just two trading days, Thursday and Friday, the turnover amounted to EUR 3,520, which is 4.8 times lower than the turnover at the end of the previous year.
Montenegro entered this year with temporary financing, as the Parliament did not adopt the state budget by December 31.
Mandić scheduled a parliamentary session for January 21 and called on the opposition to participate, rather than obstructing the session where the budget and important laws proposed by the government will be discussed.
In a statement for the RTCG portal, he urged the opposition not to engage in obstruction, emphasizing that the failure to adopt the budget would harm all citizens, both those supporting the parliamentary majority and those backing the opposition.
This week, the stock of the Simo Milošević Institute increased by 21% to EUR 35.45, while the stock of the Montenegrin Electric Transmission System (CGES) rose by 0.7% to EUR 1.4, and the Montenegrin Telekom stock increased by 3.7% to EUR 2.24.
The stock of IGM Račica Tivat remained unchanged at EUR 2.
This week, the focus was on the fate of the Institute, which remains uncertain, even after the shareholders’ assembly held on Thursday. Despite an agreement on partial amendments to the Restructuring Plan, a new dispute arose as the government proposed a new decision on recapitalization, which was unacceptable to small shareholders.
The continuation of the assembly was postponed to January 21, and therefore, there was no voting on the Restructuring Plan or the recapitalization decision on Thursday. By then, the Restructuring Plan should be revised according to the reached agreement, and the government must either return the previous version of the recapitalization decision or prepare a new one acceptable to small shareholders, as reported by “Vijesti.”
Otherwise, as stated, the government will not receive the votes of small shareholders, which are necessary to pass and implement these decisions.
Under the first version of the recapitalization decision worth EUR 23.5 million, all existing shareholders could participate in the process, receiving shares at a nominal price of EUR 154.93 in proportion to their current ownership. This way, shareholders who participated in the recapitalization could preserve or partially increase their current ownership percentage at the expense of those who did not participate.
However, on Thursday, just before the assembly, the government presented a new decision on recapitalization, granting itself greater rights in the process compared to other shareholders, aiming to achieve a two-thirds ownership, even if other shareholders participated in the recapitalization.
Currently, the government holds 56.4% of shares, Vila Oliva co-owner Žarko Rakčević owns 27.4%, and other small shareholders hold about 16%.
Rakčević stated that minority shareholders would not allow the marginalization being imposed on them.
In the Morning Program of TVCG, he said that they would not allow the minority shareholders’ stake to fall from 27% to 24%, as proposed by the government.
Following the shareholders’ assembly, the government announced that the Institute had two options: either the state could buy the shares of minority shareholders to secure two-thirds ownership for making decisions, or the state could jointly secure 40% of the total investment for restructuring with minority shareholders.
According to government representatives, they are willing to accept compromise solutions that will benefit all owners of the Institute, employees, Herceg Novi, and Montenegro, if the minority shareholder opts for joint investment with the state.
This week, a strike by some employees at Port of Adria was postponed until further notice by order of the Basic Court in Bar.
Earlier, they had announced they would go on strike on Thursday, demanding a 15% salary increase, the creation of a collective agreement with the employer, and the payment of strike-related salary compensation to employees on strike.
The Montenegrin Electric Power Company (EPCG) has once again issued a tender for the construction of the Otilovići small hydroelectric power plant (mHE), valued at EUR 6.8 million excluding VAT, with bids to be submitted by January 31.
Total turnover on the Montenegro Stock Exchange in December last year amounted to EUR 700,190, which was 174% higher than in November.
Compared to December 2023, the turnover was 87.83% lower. The average daily turnover in the previous month was EUR 31,830, according to the Montenegro Stock Exchange Bulletin.
In December, trading occurred for 22 days, and 162 transactions were completed.
The market capitalization of stocks on the regulated market of the Montenegro Stock Exchange as of December 31 amounted to EUR 2.6 billion, representing a 4% increase compared to the same period in 2023.
