Regional Stock Exchanges
19. February 2007. | 14:02 18:36
The past week was the first since the start of the year that saw a fall in the value of the Belgrade Stock Exchange (BSE) index, Belex15.
The one percent drop in value could indicate a halt in the market that has gained several dozen percent since the beginning of the year. With the recent added capitalization of Metals and Agrobanka banks, it seems investors are set to worry about their own liquidity, a subject rarely considered in the past period. Two new members were added to the continuous market last week. Northern Serbia’s Subotica’s Fidelinka company set a new historic high at EUR 25.03, with significant trading in the first half of the week. Belgrade’s Velefarm achieved a somewhat slower positive move at a weekly level, after the initial investor optimism in the wake of the new trading methods. In the meantime, Bosnia and Herzegovina capital market showed a new rise in stock market prices in the past ten days. A huge demand in shares, that had some compared it to a gold rush, caused the rise. Stock market analysts believe that Banjaluka and Sarajevo stock markets’ indexes have done exceptionally well this year due to the entry of big western investors, as well as a significantly increased participation of domestic investors. Acting Republika Srpska (RS), the Serb entity within the BiH Federation, Investment and Development Bank director and advisor with the finance ministry Jasminko Jotic said that the investors had recognized the already adopted and proposed innovative new regulation, as well as a simulative tax policy, infrastructural projects in the pipeline and the progress made in the privatization process. Sarajevo Stock Exchange director Zlatan Dedic believes its expansion to be linked to new foreign investors and announced privatization of domestic companies, as well as Bosnian infrastructural projects. Bonus investment fund analyst Slobodan Tubin assumes the market is still lacking quality stock, as well as that a large number of brokers continue to push up the prices of shares that should not gain in value. Meanwhile, the Zagreb Stock Exchange registered EUR 336.8mn worth of trading last week, almost five times as much as the week before. At the same time, the volume of trading increased by 30 percent, while the figure was even higher in institutional bonds transactions, the market’s weekly report says. Crobex index thus grew by 1.7 percent, to a record high of 3,764.8 points.
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