Analysis of trading on Belgrade Stock Exchange - October 22-26, 2007

Another catastrophic week on Belgrade Stock Exchange. After mild rehabilitation of daily turnover on Wednesday, October 24, and approaching to the value of 8m RSD, the next day we witnessed drastical fall to only 3.4m RSD. The tendency of general decrease in price of stocks continued, which resulted in weekly reduction of index of the most liquid stocks by 2.3% and the index of Belex line by 1.24%. The only optimistic thing was participation of foreign investors, which was stable and amounted to about 43% and represented small growth in comparison with the previous week.

Among the most traded stocks were stocks of AIK bank, Energoprojekt holding and Energomontaža with occasional appearance of Unifarm–Zemun. After two successive increases in price - 20% and 17%, Unifarm reached its History High value of 30,000 RSD on October 24 and it contributed to record turnover on the stock exchange this week with 4,400 traded stocks.

After long waiting, Sojaprotein will finally appear on List A of the Belgrade Stock Exchange. The debut of Sojaprotein in the group of the most elite stocks is schedulled for October 26. By the way, Sojaprotein has announced new issue of stocks that will be sold at price of 20,600 RSD. Priority in purchase will have stockholders registered with CRHoV on November 2, 2007. We should wait and see whether additional capitalization of Sojaprotein will be a bit more successful than additional capitalization of Telefonija. Namely, after the expiration of the deadline for registration of new issue of stocks of Telefonija at privileged price of 13,000 RSD, all other stockholders can register stocks at price of 15,000 RSD in period between Tuesday, October 23, and November 12. Let us remind that the price of stocks of Telefonija was barely reaching price of 13,100 RSD last week.

Doubling of capital by means of new issue of stocks has also been announced by Jubmes bank, but not before year 2008. Currently, the basic capital of the bank amounts to 35m EUR.

Although Swedish-Lithuanian consortium officially became new owner of BIP and announced investments worth at least 40m EUR within next five years, judging by the price of stocks of BIP on the Belgrade Stock Exchange, this news did not have much influence on investors. After mild growth of price to 349 RSD, stocks of BIP ended last week at price of 320 RSD.

Author : Tijana Cvetković, financial analyst

Stock Company Ilirika Investments, Belgrade

[email protected]

Supervisory Organ: Securities Commission, Belgrade