NIS closes the week above RSD 700, Belex advances 2.3%

The Serbian stock market recorded strong growth with increased investment activity, while the total trading turnover, thanks to government bonds, reached RSD 984.4m (EUR 8.4m). The Belex15 index rose 2.3% to 852.4 points.

The Petroleum Industry of Serbia (NIIS) was by far the most active stock reaching a turnover of RSD 23.8m, with an increase of 3.7% to RSD 705. NIS reached its weekly high at RSD 710, but with pressure on the ask side at that level, probably from domestic pension funds, which have been the biggest sellers of the stock for weeks. Namely, these institutional investors have regulatory restrictions regarding their exposure to individual securities. Considering they hold large stakes in NIS, any increase in the stock price necessarily leads to a reduction in their stake.

The shares in Dunav Osiguranje (DNOS) recovered by 3.5% to RSD 1,122 with a turnover of 6.2 RSDm. The stock did not fall below the RSD 1,100 level, except at the beginning of the week. The current market capitalization of this insurance company is around EUR 145m, while it is expected the company has written a gross premium of around EUR 300m in 2022.

Preferred stock in Philip Morris (DINNBP) continued the trend of solid investment activity, although it went ex-dividend recently. The total turnover amounted to RSD 2.0m with a price increase of RSD 7,290.

Shares in Alfa Plam (ALFA) fell by 0.4% to RSD 23,500 with a turnover of RSD 1.6m. The company reported that the EGM adopted the decision on the squeeze out procedure at RSD 20,892 per share. Investors who bought Alfa shares at a higher price in the past weeks expect that they would be able to challenge the squeeze-out price in the court.

WEEKLY REPORT, January 23-27, 2023