New weekly fall on the BSE, but support seen on Friday’s trading

Agrobanka tanked by 43.29% over the last five trading days

Very good economic news and strong reports released by major US and European companies drove the rise of the world markets last week.

Despite the worldwide optimism, the Belgrade Stock Exchange continued with negative trend, by declining first four days and rebounding on Friday. The Belex15 Index, widely seen as the market benchmark, dropped 2.29% over the last five days and ended the week at 475.52, almost the lowest level since May 2009. Trading value was rather slimmer compared to the prior five trading days and totalled to RSD 275.14m.

The biggest surprise of the week was very huge drop in the price of Belgrade-based Agrobanka. Stock price plunged 43.29% amid the speculations that the bank would write off half of its receivables on made loans and that it did not have adequate capital. On Friday, the bank hit the lowest level since listing by reaching all-time low of RSD 1,474. At that price Agrobanka is RSD 1.06bn. In 2012 the stock plunged by 50%.

The leading issue in the market by trading value was the stock in AIK Banka with turnover worth RSD 34.51m. The stock price was weaker 0.84% and ended at RSD 1,530. The stock price crossed the lower Bollinger Bands line and got back into the 95% probability range.

Airport Nikola Tesla was the second most traded issue in the market. Turnover in the stock valued at RSD 23.15m and the price slid 1.20% to RSD 493.

The largest stock in the market, NIS, fell by 2.33% to RSD 586, below psychologically important mark of RSD 600. Turnover was RSD 22.3m. The price fell below the lower Bollinger Band which may indicate the rise of the price in the future. In addition, Relative Strength Index fell below 30% marking that there have been many downs in comparisons to the ups.

The largest construction company, Energoprojekt Holding, advanced 0.50% last week and the stock price ended the session at RSD 406. Trading value was RSD 20.68m.

Imlek, the largest domestic dairy, was the fifth most traded stock. The price gained 6.03%, the largest weekly gain since Nov-4, 2011. The company has been eyed by event-driven investors since the management company of the major shareholder declared it would sell the stake to a strategic partner in 2012.

Leading soybean processor, Sojaprotein, saw very light turnover of RSD 2.73m. The stock price was weaker 1.73% and fell to RSD 511.

Komercijalna Banka experienced RSD 3.76m trading value amid the price fall of 2.65%.

Last week the National Bank of Serbia lowered the key rate by 0.25 percentage points to 9.5%. It is a 2-week rate that the central bank pays to other commercial banks on two-week repo transactions.

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