Analysis of trading on Belgrade Stock Exchange between August 20 and August 24, 2007

Catastrophally small turnovers marked the trading on Belgrade Stock Exchange this week. Drastically reduced demand for stocks, with significant volumes of supply led to the fall in stock exchange indexes. Belex 15 registered weekly fall of 0.54%, while Belex line fell by 0.16%. Average daily turnover amounted to less than 6m RSD with already standardly dominant stocks. Foreign investors participated in last-week total turnover with somewhat less than 50%.

As usual, the most traded stocks on the Belgrade Stock Exchange were the stocks of AIK banka and Energoprojekt holding with occasional company of stocks of Sojaprotein. These are also rare stocks that maintained their values at the relatively stable level in this period of negative correction of prices. In this period, value of stock of AIK banka was around 11,300 RSD, the stock of Energoprojekt holding was about 3,250 RSD, while the stock of Sojaprotein oscillated around 23,000 RSD. Pleasant surprise on the Belgrade Stock Exchange last week was Bambi Banat-with constant growth of price, which amounted to 3% at weekly level. Healthy food concern Bambi Banat increased net profit in 2006 by 31m RSD, to about 244m RSD. The entire property of that company, 44.09% of which belongs to company New World Value Fund, grew by about 1.1 billion RSD.

Čačanska banka obtained credit in amount of 3m EUR from the European Fund for Southeast Europe (EFSE) to reinforce capital base, increase potentials of the bank and to expand business network. Basic idea of the bank is to develop business partnerships with small and mid-sized enterprises that want to start and develop their businesses.

Company Zdravlje Actavis announced commencement of production by GMP standards for the beginning of the next week. That will open the market of EU for the products of this factory. Improvement in the production process is a result of a big change in the business policy of Zdravlje, which used to sell 84% of products on the markets of Serbia, and now it will be producing 75% of products for Actavis. Projected growth of production in 2008 is 13%, but this company already registered growth of 20% in June 2007.

Author of the report : Tijana Cvetković, financial analyst

Ilirika Investments, a.d., Belgrade

tijana.cvetkovic@ilirika.co.yu

Supervisory Organ: Securities Commission, Belgrade