Opposing trends in the stock market index and low trading volumes marked the week on the Montenegro Stock Exchange, during which Prime Minister Milojko Spajić announced that Montenegro had improved its business environment by reducing labor market burdens and the shadow economy.
The index of the top ten companies on the Montenegro Stock Exchange, MNSE10, decreased by 0.4% to 1,200.89 points, while MONEX slightly strengthened to 17,955.55 points.
The trading volume amounted to 34,650 EUR, 12 times lower than the previous week.
During the traditional “Open with the Prime Minister” event, organized by the American Chamber of Commerce (AmCham) in Montenegro, Spajić stated that there had been a noticeable reduction in the gray and black markets, calling it a significant step forward.
“We now have a tax administration that operates much more efficiently and handles VAT refunds, which is crucial for the liquidity of businesses. Additionally, communication with the tax administration has greatly improved,” said Spajić during a conversation with AmCham’s executive director, Marko Miročević.
AmCham’s business environment report for the 2023-2024 period showed that the overall assessment of the business environment is 5.91. This is slightly higher compared to the previous report.
AmCham emphasized the need for more concrete and visible progress in areas such as rule of law, legal certainty, the efficiency of public administration, combating the gray economy, and digital transformation.
Explaining the assessment in the report, Spajić highlighted Montenegro’s progress over the past few years in various fields, announcing a “tsunami of infrastructure projects” that would take place in the coming period.
This week, the shares of the Budvanska Rivijera Hotel Group strengthened by 11% to 8 EUR, while Plantaže shares rose by 8% to 20 cents.
On the other hand, Montenegro Express Group lost 13.2% to 17 cents, Port of Adria dropped by 9% to 30 cents, Crnogorski Elektroprenosni Sistem (CGES) fell by 4.9% to 1.17 EUR, and Elektroprivreda (EPCG) saw a slight decline to 5.5 EUR.
Shares of the following companies remained unchanged: Institut “Simo Milošević” at 58 EUR, Jugopetrol at 15 EUR, Vinopromet Herceg Novi at 10.4 EUR, Hipotekarna Banka at 9.3 EUR, Crnogorski Telekom at 2.44 EUR, IGM Račica Tivat at 2 EUR, and Tara Aerospace at 1 EUR.
The week was also marked by news that Eagle Hills Montenegro, backed by Arab capital, made the highest bids for more than ten beaches on Velika Plaža at a public auction for beach rentals. The beaches include popular ones such as Saranda, Adriatica, Imperial, Hill, Mojito, Habana, Safari, Tropicana, Koral, part of Pearle Beach, and Barbose.
Spajić stated that the tender for the beach rental in Ulcinj was open and transparent, and the government sees no legal basis for it to be canceled. He added that they are open to dialogue, which could include potential new renters.
The Association of Beach Renters in Ulcinj announced protests if the tender is not canceled.
The Parliament this week passed the Energy Law, which, according to the statement, establishes a modern and aligned legal framework for the development of a stable, sustainable, and competitive energy system.
The Ministry of Energy stated that this law is one of the key legislative acts that will significantly improve the energy sector, enable deeper integration of Montenegro into the EU’s single electricity market, and contribute to achieving the strategic goals of the green transition.
“This law is not just a technical standard but a fundamental strategic decision – the vision of Montenegro’s development as an energy-efficient, innovative, and economically resilient state,” the statement reads.
The Ministry of Finance reported that Montenegro can be proud of two consecutive upgrades to its credit rating during the current government’s term.
“Progress, as shown by official reports from the two most influential credit agencies, proves that there is no truth to the public misconception that the country’s rating is at rock bottom. In fact, it has been pulled from the bottom after years of stagnation and/or decline,” the Ministry stated.
They also added that Montenegro remains the most advanced in the EU accession process among countries in the Western Balkans.
