Analysis of trading on Belgrade Stock Exchange - November 19-23, 2007

Belgrade Stock Exchange set several records last week, which are, unfortunately, negative. What contributed the most to that was general panic among the investors who are trying to sell their stocks at any price as soon as possible. The reasons for that are political events related to resolving of status of Kosovo, as well as general "fall" of stock exchanges in the region. The consequence of such behaviour is returning of value of index Belex 15 to the March level, that is, weekly fall of 12.73%.

A bit more "successful" was Belex line. It registered fall of "only"9.16%. Although it would be logical to expect higher demand for stocks and bigger daily turnovers due to general sale on the Belgrade Stock Exchange, the reality is completely different. Average daily turnover barely exceeded 4.3m EUR this week, and participation of foreign investors was within the limits of the annual average.

The stocks of AIK banka were, once again, the most traded stocks on the stock exchange with daily turnover, on Thursday, November 22, of 21,238 stocks. The price of stock of AIK banka fell by about 14% last week. After a long time, stocks of Agrobanka again entered the group of stocks with the biggest daily turnovers. Number of traded stocks in this week was about 900 stocks, while the weekly fall in price amounted to 4.54%.

Another bank surprised us with its daily turnover last week. Komercijalna banka with 311 traded stocks was one of the entities with the most traded stocks that day. Invitation for registration and payment of 72,000 common stocks of this bank has been announced and that will increase capital of the bank by 8 billion RSD. Stockholders with purchase priority will be able to buy stocks of the bank between November 24 and February 1 at price of 112,000 RSD, while all others can buy the stocks at price of 124,000 RSD between February 2 and 21, 2008.

Author : Tijana Cvetković, financial analyst

Ilirika Investments, a.d., Beograd

tijana.cvetkovic@ilirika.co.yu

Supervisory Organ: Securities Commission, Belgrade