Modest trading on the BSE, NIS sanctions postpones

The modest trading volumes on the domestic stock market and the continued recovery of the index were overshadowed by the US administration’s decision to postpone sanctions against the Petroleum Industry of Serbia (NIIS). Thanks to government bonds, total weekly turnover amounted to RSD 382.3m (EUR 3.3m), with the Belek15 index rising by 0.4% to 1,135 points.

Although NIS stock has not been trading for some time, investors were focused on the US administration’s decision to grant the company a special license, postponing the imposition of sanctions by a month until 28 March. The company announced that it will utilize the postponement of sanctions to collaborate with shareholders in finding solutions that will enable the long-term normal operation of the company and ensure Serbia’s energy stability.

NIS also announced that it would do its utmost to overcome, as soon as possible, the minor difficulties in payment transactions at NIS petrol stations caused by the application of sanctions by certain institutions. The day before the announced sanctions came into force, Gazprom Neft reduced its stake in NIS from 50 to 44.8%, while its parent company, Gazprom, got a 5.2% stake.

In the absence of any trading in NIS stocks, the Belgrade Stock Exchange is recording tragically low turnover. The most active stock was Dunav Osiguranje (DNOS), with a turnover of RSD 5.6m and an increase of 2.3% to RSD 1,452. Over the week, the stock almost hit an RSD 1,500 level, helped by the fact that the supply of the stock has been extremely low for some time. Three years ago, approximately 18% of the company’s capital was distributed to former and current employees, and many shareholders have since sold their stock.

Impol Seval (IMPL) remained at the RSD 7,700 level with modest trading last week, while the trend of extremely low turnover in shares of Belgrade Airport (AERO) continued with a slight price drop.

WEEKLY REPORT, February 24-28, 2025