During the first seven months of this year, the turnover of over seven million euros was realized on the Montenegro Stock Exchange, which was realized in over 1.000 transactions, which represents an increase in turnover of over 15 percent compared to the same period of the previous year. Both stock market indices achieved growth, he told "Vijesti" Milena Vučinić, executive director of the Montenegro Stock Exchange.
"The highest turnover this year was achieved by trading in shares and corporate bonds of Hipotekarna banka in the amount exceeding 1,5 million, shares in Maintenance of railway rolling stock in the amount of 820 thousand euros, while turnover in Railway transport amounted to 670 thousand euros. Shares of Crnogorski Telekom were traded in the amount of 500 thousand euros, and shares of Jugopetrol in the amount of 480 thousand euros, and significant turnover was realized in the shares of Napredak Kotor in the amount of 330 thousand euros".
She stated that two primary sales were realized, namely the action of the First Bank of Montenegro in the amount of 515 thousand euros and the action of Profit App in the amount of 180.000 euros.
"When it comes to the continuity of dividend payments, the shares of Jugopetrol, Crnogorski Telekom and Crnogorski elektroprenosnog sistem are leading the way, which are recognized as the three companies that in the previous six years, more precisely starting from 2018 and ending in 2023, have paid dividends to their shareholders every year . When it comes to operations, the Stock Exchange ended the first and second quarter of this year with a positive result, i.e. it made a net profit".
Apart from brokerage houses, to what extent do citizens participate in share trading?
Brokerage houses are stock exchange members who receive orders and trade on the stock exchange on behalf and for the account of their clients. The extent to which citizens participate in share trading can be seen based on data on the type and structure of buyers and sellers who trade on the Montenegrin capital market. There are four types of accounts through which trading is carried out: client accounts, intended for domestic and foreign individuals and legal entities, dealer accounts that are used to carry out dealer operations, then depository accounts that are intended for trading shares performed by investment funds and collective custody accounts , which refer to the spectrum of clients, which can be institutional, that is, professional investors, then small investors, from the country and abroad, whose identity is known only to the bank with which they concluded the contract on performing custody operations.
Who buys shares?
In the first seven months of this year, domestic and foreign individuals and legal entities had the dominant share in the purchase of shares in the amount of 57,50%, followed by custodian banks, which had a share in trading of 35,09% on behalf of their clients, while the remaining 7,42% related to the trading activity of investment funds.
It should be borne in mind that Montenegrin citizens, in addition to buying and selling shares listed on the Montenegro Stock Exchange, have the opportunity to buy and sell shares listed on European or American stock exchanges, as well as bonds issued by member states, through investment companies and custodian banks registered in Montenegro. European Union and other countries, including corporate bonds.
Therefore, in order to assess the overall stock market activity of our citizens and the economy, their trading activity on the international capital market should be taken into account, as well as their trading on the over-the-counter, or OTC, market of Montenegro and the world.
Can it be said that investing in shares is a profitable investment and under what conditions?
Investment performance can be measured in a number of ways. There are different kinds and types of investors, who have different interests and expectations when it comes to returns and the level of tolerance for investment risk. The investor's profile is determined depending on his financial strength, age, investment goal, risk appetite, and the time period for which the investor is ready to invest his free funds, of course other factors should also be taken into account.
The most developed countries in the world have strong stock markets and strong capital markets, because their citizens, among others, actively participate in them from the earliest period of their lives. The returns they achieve and which accumulate over the years, starting from childhood, later serve to finance education, purchase real estate, as well as to achieve other life goals that increase the personal wealth of citizens.
Investing in shares carries numerous risks?
Yes, but it also brings opportunities to earn returns, especially if it is a medium and long-term investment. Investing in shares provides opportunities for achieving above-average returns, but also carries with it proportionally high levels of risk. Investors generally distribute their investments in several classes of financial assets, in order to mitigate the impact of potential risks that investments inevitably carry.
Bonus video:
