Montenegro Stock Exchange sees minor index growth amid key government announcements

The Montenegro Stock Exchange experienced a modest increase in indices and low trading volume during a week marked by significant government updates, including the presentation of the Fiscal Strategy through 2027 and details of the “Europe Now 2” program.

The MNSE10 index, reflecting the top ten companies, and the MONEX index slightly strengthened to 995.67 and 15,122.79 points, respectively.

Trading activity was affected by a public holiday on Monday, resulting in a trading volume of nearly €34,000 over four trading days, which was twelve times lower than the previous week.

The Ministry of Finance has prepared a draft of the Fiscal Strategy through 2027, which was presented at a press conference and is now open for public discussion until August 7. The strategy includes higher wages for all employees in Montenegro, with an average salary projected to reach €1,000, a minimum wage of around €700, pension increases of 7-8% starting next year, and measures to reduce the shadow economy. The standard VAT rate will remain at 21%.

Prime Minister Milojko Spajić announced that through the “Europe Now 2” program, around 300,000 employees in Montenegro will see their wages increased by an average of over 20%. The government plans to reduce pension and disability insurance contributions from 5.5% to 0% for employers and from 15% to 10% for employees.

The Pension Fund will not be abolished, and Montenegro’s pension system will remain unchanged.

The stock of the Business-Logistics Center (PLC) Morača rose by 12.2% to €4.50. The company will distribute €400,000 of its net profit of €847,030 as dividends to shareholders, with the remainder retained.

Jugopetrol’s stock increased by 3.4% to €12.42, Crnogorski Telekom’s by 0.5% to €2.06, and Elektroprivreda (EPCG) slightly to €5.38. Conversely, Luka Bar fell by 4.8% to €0.2784, and Crnogorski elektroprenosni sistem (CGES) by 2% to €1.40. The Port of Adria’s shares remained unchanged at €0.14.

The European Bank for Reconstruction and Development (EBRD) secured a state-guaranteed loan of up to €28 million for CGES to upgrade the Brezna substation in northwest Montenegro. This project aims to integrate 400 megawatts of renewable energy into the national grid, contributing to the decarbonization of Montenegro’s economy.

The Assembly discussed a proposal to amend the Labor Law, which suggests that fixed-term contracts should not exceed two years, reverting to previous legislation from December 2011 to January 2020.

Additionally, the Assembly reviewed a proposal for the “Housing for All” fund, which would enable citizens to purchase apartments at €900 per square meter.

The Europe Now Movement submitted a proposal for a Development Bank, intended to drive economic growth by supporting various businesses.

This week also saw the resumption of a maritime route between Montenegro and Italy, with the ferry AF MIA starting its service between Ancona and Bar twice a week.

The Port of Kotor will begin dividend payments totaling €715,260 on Monday.