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NIIS and AERO in focus

On a weekly level, we have seen pretty good trading turnover around EUR 4.8 mil, which means increase of 74.33% compared to the previous week, mostly due to block transactions (RVNC and ZLTL). Belex15 Index, the benchmark encompassing the most liquid shares of the BSE, has increased by 0.98%, while the Belexline made increase of 0.70%.

Shares:

The Petroleum Industry of Serbia NIS (NIIS) was the most traded issue on Prime market on the BSE last week and we have seen nice trading turnover about EUR 6 mil. The price of NIS shares fluctuated in wide channel, from RSD 493 to RSD 520. After falling down below psychological level of RSD 500, we have seen preety good price recovering to the level of RSD 520. Investors are waiting for Q1 results, and these results will show the way of price in further period. It is significant to say that EBITDA for NIIS is EUR 300 mil, while current Market cap is about EUR 840 mil. Current share price is RSD 515.

The shares of Airport Nikola Tesla (AERO) made total weekly turnover around EUR 152,000. The price has fluctuated from RSD 495 to RSD 514, with the Friday’s close of RSD 511, and it made increase of 1.37% on w-o-w level. It is obvious that investors need Q1 results for their further decisions. Current Market capitalisation is around EUR 176 mil.

Shares of Serbian construction giant JSC , Belgrade (ENHL) have been traded mostly in thin channel from RSD 941 to RSD 945. Trading value totalled to EUR 86,000, and the price increased by 0,43% on w-o-w level. General manager of ENHL, Mr. Vladimir Milovanovic announced that Consolidated Revenues for 2010, was around EUR 228 mil, while EBIT was around EUR 13.5 mil, and that ENHL possess about EUR 350 mil signed contracts. He also said he expects this contracts value to be higher. In addition, Mr. Milovanovic said several companies are willing to take over Energoprojekt holding, and that Canadian construction Company SNC Lavalin is still interested to buy ENHL. Energoprojekt holding announced new contract of EUR 26.8 mil for Energoprojekt niskogradnja (EPEN). Current market price is RSD 945, and the Market capitalization is around EUR 90 mil.

Becej-headquartered soybean (SJPT) processor has been traded in channel from RSD 1,005 to RSD 1,016 in very slim turnover. The company’s management announced that the export doubled to EUR 11m and that huge profit (around EUR 4 mil) had been made in the first quarter of 2011. Current price is RSD 1,012 and the current Makret capitalisation is around EUR 100 mil.

Issues of the biggest Serbian dairy, JSC Imlek, Belgrade (IMLK) fell below psychological level of RSD 2,000 and the Friday's close of price is RSD 1,955.

The banking sector was in focus previous week. Precisely, stated-own , Belgrade (KMBN) recorded total weekly trading tunover around EUR 410,000, and most of the transactions have been realized on RSD 3,200 level. The price fluctuated from RSD 3.200 to RSD 3,300, and the current price is RSD 3,250. Komercijalna banka will announce Q1 results on Wednesday, May, 5th. The shares of AIK banka Nis, (AIKB) fell down to the level of around RSD 3,650, mostly due to worse than expected Q1 Profit. But, last two days of previous week, price increased to the level of RSD 3,790. Current price is RSD 3,702 and the current Market capitalisation is around EUR 310.

Treasury Bills and Treasury Notes:

Two auctions of treasuries took place last week. 3-month T-bills sold out at the weighted average rate of return (money market yield) of 13.10% with total turnover about EUR 43 mil, while 24-month t-bills sold out at the money market yield of 13.50% with total turnover about EUR 41.2 mil.

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) (%) (%)

JSC NIS, NIIS 585,954 JSC AIK banka, Niš +13.62% JSC BIP, Beograd -10.71%

JSC Komercijalna JSC Univerzal JSC Credy banka, KMBN 407,531 +9.57% -10.42% banka, Beograd banka, Beograd Kragujevac

JSC Alfa plam, JSC Progres, JSC AIK banka, Niš AIKB 164,288 +6.74% -9.64% Vranje Beograd

JSC Galenika JSC AIK banka, Niš AIKBPB 157,300 +4.72% JSC Imlek, Beograd -3.88% fitofarmacija, Vranje

JSC Aerodrom Nikola JSC Privredna JSC Napred GP, AERO 149,902 +4.58% -3.45% Tesla, Beograd banka, Beograd Beograd

Business News of the Week News from the (BSE) ► GA Meeting scheduled on 31.5.2011. - Komercijalna banka a.d. , Agreement on subsidies for 200 new jobs signed - Beograd - KMBN Banini invests €30 million in new confectionery plant ► A new business deal in , worth 26.8 million Eur - Energoprojekt holding a.d. , Beograd – ENHL Minister of Economy and Regional Development Nebojsa http://www.belex.rs/data/2011/04/00067440_E.pdf Ciric signed on Thursday in Kikinda an agreement with ► Report from GA Meeting held on 13.4.2011. - Imlek a.d. , Beograd – representatives of the company Banini on the allocation IMLK of a grant for the creation of 200 new jobs, the Ministry of Economy and Regional Development announced. After ► Report from GA Meeting held on 20.4.2011. - AIK banka a.d. , Niš - signing the Agreement, Ciric said that that aid was AIKB important for the municipality of Kikinda where the unemployment rate was close to 20 percent and added Foreign Investors Participation in Total Turnover that the state would always help companies like Banini to boost exports and create new jobs. The total investment 100% of the company Banini amounts to about €30 million and envisages the construction of an 18,000-square-meter 80% production hall and the procurement and installation of confectionery products production and packaging lines.. (Ekapija) 60%

40% Export from Serbia to on constant rise - Exports in first two months of 2011 hit record high of 20% 127.9 million 0% 26-Apr 27-Apr 28-Apr 29-Apr Preliminary data on the trade exchange for March this year show that during 2011 Serbia could export to Total FIS b-FIS s-FIS FIB FIT Germany goods and services worth over €1 billion, the Ministry of Economy of Serbia announced on Source: Belgrade Stock Exchange Analysis: Intercity broker Wednesday. The preliminary data for March 2011 also show that trade exchange between Serbia and Germany continues to rise and that total trade between the two Foreign investor’s participation in turnover of shares (FIS) on the buy- countries could reach €2.5 billion. According to the data side (b-FIS) hit the highest point on April 26 (84.48%). On weekly level, provided by the German Federal Office of Statistics, foreign investors participated in total b-FIS 30.47% and in total s-FIS which were submitted to the competent ministry by the 4.93%. Serbian Embassy to Berlin, Serbia's exports to Germany in the first two months this year reached €127.9 million. Republic of Serbia Bonds (Weekly Change & Yield) According to the statement issued by the Ministry of Economy and Regional Development, Serbia's exports to % Germany increased by around 33% in the first two Series 21 April 29 April Yield months of 2011, while imports from Germany to Serbia change rose by more than 13% against the same period last A2011 99.12 99.00 -0.12% 12.15% year. In this way, Serbia's exports to Germany exceeded the record high from 2008 when Serbian companies A2012 94.35 94.57 0.23% 5.25% exported goods and services worth €117.5 million in January and February that year. (E kapija) A2013 88.58 90.46 2.12% 4.91% A2014 84.48 86.13 1.95% 4.95%

SIEPA expects USD 4 billion foreign investments A2015 80.30 81.71 1.75% 5.06%

A2016 75.15 78.79 4.84% 4.79% The Investment and Export Promotion Agency (SIEPA) Source: Belgrade Stock Exchange expects Serbia to receive about USD 4 billion worth of foreign investments this year, people at this government Government euro-denominated zero coupon bonds had light trading agency told Dnevnik daily newspaper. The value of value of around EUR 192,400. The most traded issue was a series of foreign investments in the country in January amounted A2013 with turnover about EUR 54,360 and yield the return of 4.91% at to USD 59 million, said people at SIEPA. - This year we can expect about USD 4 billion foreign investments. annual basis. Privatization of Telekom Srbija is ahead of us, while Fiat Middle Exchange Rate E U R / R S D plans to carry out most of its operations in Kragujevac in order to be able to start the assembly-line production of (RSD) new models in Serbia. Also, investments will be made in 106,0 the Petroleum Industry of Serbia, as well as in many 105,0 other projects - people at SIEPA explained. The (NBS) has not yet announced the data 104,0 about the inflow of foreign direct investments in the country in the first quarter of this year. Only the data for 103,0 January are available at the moment and people at 102,0 SIEPA believe that, once announced, the results for the first quarter will provide reason for optimism that the 101,0 value of investments in Serbia this year will be much 100,0 higher than in 2010. (E kapija) 29.03.2011 04.04.2011. 08.04.2011. 14.04.2011. 20.04.2011. 28.04.2011.

Source: National Bank of Serbia

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