Metalac plunges to new multi-year low, NIS shines

The domestic stock market stopped the four-week downward trend with increased investment activity. The Belex15 index closed the week almost unchanged at 780 points, and the total market turnover amounted to RSD 95.8m (EUR 0.82m).

The most active stock was Messer Tehnogas (TGAS), which weakened by an additional 4.2% to RSD 12,069 with a turnover of RSD 43.5m. The stock reached levels last seen in the early pandemic in March 2020. The stock has decreased 23.1% since the start of the year and has been trading at a PE ratio of 4.1x.

Shares in the Petroleum Industry of Serbia (NIIS) recorded a turnover of RSD 26.5m, increasing 2.2% to RSD 650. After the company announced stellar quarterly business results, the stock bears a forward dividend yield of about 20%,  attracting the attention of investors. NIS reached its weekly high at RSD 670, though the share price increase would probably have been higher if its largest minority shareholders, domestic pension funds, had not been among the sellers for regulatory reasons.

Insurer Dunav Osiguranje (DNOS) broke the several-week downward trend, recovering 4.6% to RSD 1,076 with a turnover of RSD 9.4m and increased pressure on the bid side.

Gornji Milanovac-based Metalac (MTLC) led losers with a drop of 14.1% to RSD 1,245. The stock, which on Thursday fell to an RSD 1,220,  was last seen at that level in early 2016. The company has not reported any significant events that could be the cause of this large decrease in the share price. At the end of August, Metalac announced solid half-year business results despite cost pressures due to rising material prices. Consolidated operating profit fell by 3.2% to RSD 305.2m, while net profit decreased by 5.6% to RSD 309.3m.

WEEKLY REPORT, November, 7 – 10, 2022.