FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT APRIL 2009
MONTENEGRO STOCK EXCHANGE
Continuous development of our market is
the basis of the future of the MSE, a future
in which the MSE strongly believes.
Dejana Suskavcevic, MA
CEO
2007 showed that everything is possible,
prices of securities can go in both directions.
People can earn or lose money. 2007
definitely showed that stock market fever is
not a temporary thing but the most exploited
topic, and that proves the need for investing
in all of us. After the first several months, and
an incredible increase of MOSTE index by
250% (period from the beginning of January-
May 7th) we had a decrease but stabilization
of prices, which almost kept still during the
rest of the year. But generally, the index in
2007 increased by 77% over 2006.
We did much for the education of investors,
minority shareholders, and the media. We
installed a new web site for the stock
exchange with information about financials of
all traded companies, corporate activities of
companies, indicators, analytical information
and information about trading, etc.
HISTORY AND DEVELOPMENT
The MSE was set up in June 1993 pursuant
to the Act on Money and Capital Markets
(1989). The first founding members were the
four Montenegrin banks: Montenegrobanka
a.d. Podgorica, Pljevaljska banka a.d.
Pljevlja, Beranska banka a.d. Berane,
Hipotekarna banka a.d. Podgorica, and the
Republic of Montenegro, i.e. Montenegrin
Agency for Economic Restructuring and
Foreign Investments.
During the constitutional meeting held on
7 July 1997, the MSE harmonized its
operations with the Exchange through the
exchange operations and exchange
intermediaries Act. Another three banks and
two insurance companies joined the
founding–members of the Exchange:
Podgoriaka banka a.d. Podgorica,
Jugobanka a.d. Podgorica, Niksicka banka
a.d. Niksic, Lovcen osiguranje a.d.
Podgorica and Swiss osiguranje a.d.
Podgorica.
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The previous year exhibited that what
happened on the stock exchange is in direct
relation with the political status of the
country, the macro-economic situation and
accession and membership in numerous
international institutions.
In the last part of 2007 the MSE achieved
great results. Transactions of EUR 280
million through almost 80,000 transactions
have proved that all expectations have been
met. A Document of Association with the
Stock market of Vienna was signed, as well
as many other activities with institutions from
abroad were coordinated. We had the goal
of establishing of our market on the
international map in order to attract more
new investments, as well in order to
introduce new market material. 2007 ended
with 28 companies being
In order to increase its capital share, the
MSE issued additional shares, upon the
approval of the Federal Commission for
Securities and Financial Markets. The shares
were subscribed and paid for by several
Yugoslav banks, as well as the Federal
Government.
In order to comply with The Law on
Securities of the Republic of Montenegro,
the MSE issued a third issue of shares. The
importance of this issue which was sold
successfully with 100% subscription was
instrumental in the further development of
thecapital market of Montenegro because
with the sale of this issue 10 new
shareholders emerged as owners of the
MSE from banking sector, insurance
companies and private companies from all
spheres of economy. As of today, the MSE
has 23 shareholders.
The MSE moved to its new premises in the
new business district of the city.
listed; this in turn compares very well in light
of the statistics of more developed markets.
In 2008 I expect a very dynamic atmosphere
on the stock exchange. Incorporation of new
institutional investors, investment and
pension funds, new stock market mediators
with foreign property, and the interest of
foreign companies to be listed on the MSE,
followed by the announcement of the issuing
of corporate bonds, with an attractive tax
policy followed by appropriate legal
regulation, is the basis of the development
path of the capital market of Montenegro.
Continuous development of our market is the
basis of the future of the MSE, a future in
which the MSE strongly believes.
FUTURE OUTLOOK
In 2008, the MSE has the following plans:
• We will introduce Codex of Corporate
Governance in corporation with IFC.
• Performance of project signed at the end
of last year with the Montenegrian-Italian
company Jadran Most regarding to the
implementation standards of the EU in the
sphere financial reporting, and accounting
items of companies.
• We will get first short term securities
issued by companies.
• The MSE will organize the Second Annual
Conference.
• We will become a member of the World
Federation of Stock Exchanges.