INTERCITY BROKER JSC WEEKLY REPORT BROKERDEALERCOMPANY MemberofStockExchange th rd MemberofCentralSecuritiesDepositoryandClearinghouse May 30 – June 03 , 2 0 1 1 52MaksimaGorkogSt.,Belgrade, +381(11)3083100,3087862;Fax:+381(11)3083150 email:[email protected];www.icbbg.rs

NIIS on History high Previoustradingweekwehaveseenniceinvestmentactivity,butalsodeclineofBSEindexes.Totalweeklytradingturnoverhas beenaroundEUR6.8milanditwassignificantincreaseof19.34%comparingtotheweekbefore.Belex15Index,thebenchmark encompassingthemostliquidsharesoftheBSE,hasdeclinedby 0.31%andfelltothelevelof809points,whiletheBelexline made decrease of 0.05%. Shares:

ThePetroleumIndustryofSerbiaNIS(NIIS)wasinfocusthewholepreviousweek,withtotalrealisationofEUR1.13mil.Atthe firsthalfofpreviousweekwehaveseenhistoryhighofNISsharesonlevelRSD850,butatthesecondhalfofweekNISshares havedeclinedtothelevelofRSD777atthemoment.Attheend,shareslost1.6%oftheirvalueonwowlevel,andtheFriday’s close of price was RSD 805. It looks like price have stabilized on its psyhological level around RSD 800. Current Makret capitalisationisaroundEUR1.35bln.ItisobvioslythatinvestorsarewaitingforQ2results,fortheirfurtherinvestmentdecisions. ThesharesofAirportNikolaTesla(AERO)madetotalweeklyturnoveraroundEUR393,000,andtookthefourthplaceonBSE accordingthetradingturnover.ThepricehasfluctuatedfromRSD589toRSD635,withtheFriday’scloseofRSD598,andit madedecreaseof0.17onwowlevel.SimiliartoNIIS,thesharesofAEROmadesignificantincreaseatthefirsthalfofprevious weekandraechedthelevelofRSD635atthemoment,butatthesecondhalfpricefelltothelevelof RSD 589,below its psyhologicallevelofRSD600. Becejheadquarteredsoybean(SJPT)processormadeprettygoodtradingturnoverofaroundEUR544,000,aswell asstrongpriceincreaseof14.78%onwowlevel.ThepricehasfluctuatedinwidechannelfromRSD1,100toRSD1,330.The mainreasonforthisrallywasannouncementofDraftedDecisiononIncreasedoftheCapitalStockof“Sojaprotein”A.D.from RetainedProfit.AccordingtoBoardofDirecorsproposal,Capitalstockof''Sojaprotein''A.D.Becej willbeincreasedfromthe retainedprofitintheamountofRSD2,341,805,379.95byissueof5,050,680newshares.ItmeansthatSojaproteinwillissue 51.3% new shares, and new shares will be distributed to the shareholders that were registered with the Central Securities, DepositoryandClearingHouseatJune30th.CurrentpriceisRSD1,251andthecurrentMakretcapitalisationisaroundEUR 126.3mil. SharesofSerbianconstructiongiantJSCEnergoprojektholding,Belgrade(ENHL)havebeentradedmostlybelowlevelofRSD 900inverypoortradingvolumeofaroundEUR26,000.ThecurrentpriceisRSD882,anditrecordeddeclineof2.97%onwow level.CurrentMarketcapitalizationisaroundEUR85.6mil. Banking sector wasnotinfocusofinvestorslastweek.AIKbanka,Nis(AIKB)tookthefirstplaceinbankingsectoraccordingto tradingturnover,withrealisationofaboutEUR344,000.PricehasbeenfluctuatedfromRSD3,440toRSD3,600.Investorsare impatienttoseeQ2businessresults,afterworsethanexpectedQ1results.BelgradebasedAgrobanka(AGBN)madprettynice priceincreaseof3%comparingtotheweekbefore,whiletradingturnoverhasbeenaround147,000. Treasury Bills and Treasury Notes: TwoauctionsofTBillsandtwoauctionsofTBondstookplacelastweek.53weekTBillssoldoutattheweightedaveragerate ofreturn(moneymarketyield)of12.51%withtotalturnoveraboutEUR102mil,while6monthgovernmentbondssoldoutatthe moneymarketyieldof12.50%withtotalturnoveraboutEUR20.4mil.3yeareuroTBondssoldoutattheweightedaveragerate ofreturn(moneymarketyield)of5%withtotalturnoveraboutEUR58,89mil,while15yeareuroTBondssoldoutatthemoney marketyieldof5.85%withtotalturnoveraboutEUR46.9mil. Most Active Stocks of the Week CONTINUOUS TRADING METHOD (without block transactions) Top Gainers/Losers of the Week

Traded Value Change Change Issuer Symbol Issuer Issuer (in EUR) (%) (%) JSCVelefarm, JSCJubmesbanka, JSCNIS,NoviSad NIIS 1,136,084 +18.81% 15.78% Beograd Beograd

JSCSojaprotein, JSCJedinstvo JSCSojaprotein,Bečej SJPT 543,763 +14.77% 7.68% Bečej Sevojno,Beograd

JSCCocaColaHBC JSCMesser CCHS 534,556 JSCBIP,Beograd +11.54% 4.16% Srbija,Beograd Tehnogas

JSCAerodromNikola JSCTelefonija, JSCRazvojna AERO 392,120 +10.61% 3.63% Tesla,Beograd Beograd bankaVojvodine

JSCGlobos JSCAIKbanka,Niš AIKB 341,111 JSCVital,Vrbas +4.59% 3.33% osiguranje Business News of the Week News from the (BSE) ► GAMeetingscheduledon31.5.2011.Komercijalnabankaa.d., Benetton signs Nitex acquisition agreement - €50m BeogradKMBN investment announced ► AnewbusinessdealinKazakhstan,worth26.8millionEur Serbian Minister of Economy Nebojsa Ciric and Energoprojektholdinga.d.,Beograd–ENHL Executive Director of Italian Benetton group Biagio http://www.belex.rs/data/2011/04/00067440_E.pdf Chiarolanza signed an agreement today on the ► ReportfromGAMeetingheldon13.4.2011.Imleka.d.,Beograd– acquisition of Nisbased Nitex textile company by that IMLK Italiangroup.Mr.ChiarolanzasaidthatBenettonwould createanewcenteroftheSerbiantextileindustryinNis ► ReportfromGAMeetingheldon20.4.2011.AIKbankaa.d.,Niš withinthenextfewyears.Benettonisgoingtobuilda AIKB complex of new plants in Nis, thus creating jobs for nearly 3,000 citizens of Nis said Mr. Chiarolanza. Foreign Investors Participation in Total Turnover President of Benetton group Lucian Benetton said that that company planned to create between 2,800 and 100% 3,000newjobsandinvestaboutEUR50millioninthe company. The agreement was signed in presence of 80% SerbianPresidentBorisTadicwhoassessedthattextile workers in Serbia had a huge experience and that 60% Serbia was the country where investors in the textile industrycanmakeasignificantprofit.( BETA ) 40% Serbia issues bonds in international market - 20% Government bonds worth 700 million euros in European stock markets as of autumn 0%

As of this autumn, as people at the Public Debt 30May 31May 1Jun 2Jun 3Jun Administrationannounce,Serbiawillforthefirsttimein its recent history issue bonds in the international Total FIS b-FIS s-FIS FIB FIT financialmarket.OurgovernmentbondsworthEUR700 Source: Belgrade Stock Exchange Analysis: Intercity broker millionwillappearintheEuropeanstockmarkets.Funds collected in this way will be used to cover the budget hole caused by the unsuccessful sale of the shares of Foreigninvestor’sparticipationinturnoverofshares( FIS )onthebuy Telekom Srbija. According to the people at the Public side( b-FIS )hitthehighestpointonMay30(68.46%).Onweeklylevel, Debt Administration, the issue of bonds in dinars and foreign investorsparticipatedin total b-FIS 59.75%andintotal s-FIS euros will provide enough money to cover all the 22.24%. expensesinthestatebudgetbytheyear'send,aswell as some expenditures in the following year. The Republic of Serbia Bonds (Weekly Change & Yield) interest of potential investors in Eurobonds is highly expressed says Vuk Djokovic, state secretary in the % MinistryofFinance.ThisisagoodmomentforSerbia Series 27 May 03 June Yield toentertheinternationalfinancialmarket.Theprocedure change oftheselectionofanadviserfortheissueofEurobonds is underway. We currently negotiate with banks and A2012 94.41 94.69 0.29% 5.64% expecttoclosethedealinSeptemberDjokovicadds. A2013 89.88 90.02 0.15% 5.41% Overthelastfivemonths,thestatehasplungedintoa debt of nearly 1.4 billion euros by selling bonds. For A2014 85.08 85.42 0.4% 5.40% banks, domestic and foreign investors, this is a real business becausethe profitthey make on Dinar bonds A2015 82.19 80.77 1.72% 5.49% amounts to about 13 percent, while the profitmade on securities in euros ranges between 4.48 and 5.95 A2016 76.57 76.70 0.17% 5.45% percent. The budget hole will this year mainly be Source: Belgrade Stock Exchange coveredbynewdebts.Asidefromdeficits,thecostsof refinancingtheprincipaloftheexistingdebtsmustalso Government eurodenominated zero coupon bonds had light trading becovered.Debtswillberefinancedwithnewloans,but valueofaroundEUR229,800.Themosttradedissuewasaseriesof the public debt will not be increased because the new A2016withturnoveraboutEUR84,600andyieldthereturnof5.45%at loans will be used only to pay the existing debts. annualbasis. (Novosti ) Middle Exchange Rate E U R / R S D Foreign trade exchange with Romania reached $340m in Q1 of 2011 - Surplus of $33m in 2010 (RSD)

105,0 The foreign trade exchange between Serbia and Romania in the first quarter of 2011 reached USD 340 103,0 million, while the exchange in 2010 amounted to USD 1.26 billion, the Serbian Chamber of Commerce (SCC) 101,0 announced.Thevalueofexportin2010 wasUSD650 million,whereastheimportwasworthUSD616million, 99,0 meaningthatSerbiaregisteredaUSD33millionsurplus in the trade with Romania for the first time in many 97,0 years. What Serbia mainly exports to Romania are agricultural products, corn, wheat and sugar; chemical 95,0 products, propylene, pneumatic tires for passenger 04.05.2011. 10.05.2011. 16.05.2011. 20.05.2011. 26.05.2011. 01.06.2011. automobiles,ceramicproducts,ferrousandnonferrous metallurgyproducts,paperandcardboard.( E kapija ) Source: National Bank of Serbia

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