Judging by the activities on the stock market, the prime minister Milojko Spajic and members of his cabinet prefer real estate investments instead of investing in shares on the local stock market, which can bring tempting profits, but carry with them greater risk.
This impression is obtained by looking at the property records of the president and 31 members of the Government of Montenegro. Apart from the Prime Minister, who owns 10 shares of "Goldman Sachs", one of the largest and most famous investment banks in the world, worth about 5.000 US dollars, only eight ministers are present on the Montenegro Stock Exchange. The vice president also owns shares Aleksa Becic, actually his wife Jelena which owns the minimum number of shares of the Belgrade Nikola Tesla Airport and the Serbian Oil Industry.
The most successful is certainly the Minister of Energy Saša Mujović which has shares in its portfolio worth 10.805,45 euros at the prices at which it was last traded on the local Stock Exchange.
"I acquired shares by trading on the stock exchange through Holder Broker, during the expansion of share trading. I think it is the period 2006-2008. year. I used my own financial resources, as well as a loan that I specifically took out from the bank," Mujović told "Vijesti".
He adds that the nominal value of the shares is the same as it is on the stock market today.
"I think these are very low amounts, except maybe the actions of CGES. In any case, the crash of the stock market took me completely away from it, so I don't have any contact for years," explains the Minister of Energy.
Mujović states that during the period when he actively devoted himself to the Stock Exchange, it was "interesting and profitable".
"I was an assistant at the Faculty of Electrical Engineering, I had enough time and with my colleagues I made numerous analyzes and simulations of the movement of stock prices on the market. We were relatively successful," Mujović points out, stressing that today the stock market is a distant category for him and he absolutely does not know any trends or participate in the stock market.
Novica Vuković, Minister of Finance, he acquired the ownership of the listed securities, as he says, by purchasing them on the stock exchange, through an authorized brokerage house. The total nominal value of the listed shares, which are in the portfolio, amounts to EUR 3.160,04.
"I support investments in securities, whether equity or debt. "I prefer debt securities, that is, bonds, which bring a safe return, of course, if there is an opportunity to buy," Vuković points out.
Unlike Vuković, Deputy Prime Minister Aleksa Bečić, as he says, never owned or traded shares.
"My wife, Jelena Bečić, has, as reported in the property register, five shares of the Serbian Oil Industry and one share in Nikola Tesla Airport. She never bought shares on the stock market, but acquired them more than 16 years ago, when all citizens of the Republic of Serbia of full age acquired the right to free shares, who in the previous privatization processes did not use the right to free shares of other state-owned companies. explains Bečić.
According to data from the website of the Belgrade Stock Exchange, on Friday, August 23, the price of the share of Aerodrom Nikola Tesla ad Belgrade was 1.915 dinars, or about 16 euros, and the price of the share of NIS ad Novi Sad was 815 dinars, or 7 euros. The value of all shares of Jelena Bečić is around 51 euros.
Danilo Šaranović, the Minister of Internal Affairs, says that as a second-year student at the Faculty of Economics of the UCG in Podgorica, he actively followed the movements of the capital market, which was "alive" at that time.
"It is about a period of several years after 2006, when supply and demand, as well as the state in which certain joint-stock companies were, justified trading in securities, with the aim of realizing potential profit. However, as trades in "large packages" caused drastic changes in the market value of shares, small shareholders could not trade even when they wanted to. This is the reason why my activity on the stock market 15 years ago resulted only in a small purchase, but not in the sale of shares of three joint stock companies that I own, which according to today's market price are worth a little over 500 euros", Saranović explains.
For financial analyst dr Vladimir Pavićević the interpretation of the data that out of 31 ministers in the Government of Montenegro, only eight own shares on the Montenegro Stock Exchange requires a return at least twenty years ago, at the time of the beginning of intensive trading on the Montenegrin stock exchanges.
"At that time, we had two stock exchanges on the Montenegrin capital market. At the time of the beginning of more intensive stock market trading in Montenegro, share prices were generally many times undervalued in relation to their real value. Due to the sudden interest of citizens in the capital market, the maximum values of shares of companies listed on the stock exchange were reached during 2007 and 2008. That period was followed by their steep decline, caused by excessive 'bubble inflation' on the domestic capital market, as well as the spillover of the global financial crisis caused by the collapse of the real estate market in the USA. "Since then, the confidence of potential investors in all regional capital markets has practically 'leaked', and we can say especially in the Montenegrin market," Dr Pavićević points out.
Therefore, in his opinion, the fact that a smaller number of current ministers have capital invested in the Montenegrin market is not surprising.
The very structure of investments by ministers in the shares of companies and investment funds does not say anything special, this financial analyst believes.
"When these investments are evaluated according to the current value on the Montenegrin capital market, we see that they are mostly negligible in terms of money. Some believed in investment funds, some in transport or tourism companies, some in companies from the cities where they live, some in foreign companies, but in general, there is nothing controversial or sensational about these investments," emphasized Dr. Pavićević.
Commenting on Spajić's 10 shares of Goldman Sachs, the financial analyst says that, bearing in mind that their value has increased by about 300 percent in the last five years, there is no doubt that it is a good investment by the current prime minister, one can even say excellent, although the percentage of earnings depends , adds Pavićević, from the exact time of investment, because fluctuations in world stock markets are daily.
Finally, Dr. Vladimir Pavićević points out that the capital market in Montenegro needs to be urgently reanimated, and the solutions are well-known and very simple: regionalization of the capital market, issuance of state bonds, issuance of local self-government bonds, issuance of corporate bonds, allocation of free shares for citizens in state-owned enterprises owned by the state (that is, citizens) and a number of other mechanisms at our disposal...
"At the Belgrade Stock Exchange, for example, a corporate bond issuance project is currently being implemented under the auspices of the World Bank, in which several significant companies in Serbia have already participated. As for Montenegro, those who create the environment in the financial markets are on the move," concludes Dr. Pavićević.
Mujović bought "Mercedes" from shares
Saša Mujović states that he bought his own car from the sale of EPCG shares, of which he had around 7.000.
"The car I bought was a used 'Mercedes' C class and it cost 18.000 euros. This is from the money I earned by selling EPCG shares. I think their sales value was around eight euros per share at that time, if my memory serves me well," recalls the Minister of Energy.
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