INTERCITY BROKER JSC WEEKLY REPORT BROKER-DEALER COMPANY Member of Stock Exchange th th Member of Central Securities Depository and Clearing house June 7 – June 11 , 2 0 1 0 52 Maksima Gorkog St., Belgrade, +381 (11) 3083-100, 3087-862; Fax: +381 (11) 3083-150 e-mail: [email protected]; www.icbbg.rs

Alfa Plam shares most traded, indices fell Fluctuation of Stock Exchange Trading week began with loss of index value. Although the Indices in the Region (1-m Change) decline lasted only the first two days, it was more pronounced then three days of positive adjustment, so indices recorded a (%) weekly loss of value. Belex15 lost 3.84% and Belexline lost 2 2.38%. Total turnover on Belex was 2.22 million, and more than a third of this sum was spend on the bonds. Most traded securities 0 was Alfa Plam, and most of the shares of this successful company was bought by members of the Belgrade Alco Group. The biggest 12-May 18-May 24-May 30-May 5-Jun 11-Jun seller was the insurer , which recently -2 completed the takeover bid for Kosovsko Metohijska banka. -4 The current situation in the is turmoil and taking out the dirty laundry in company, where managers are -6 allegedly guided by a consortium preparing to buy government stake. The site of the announced that the company has arranged new jobs in Serbia and Peru in the -8 value of more than 60 million EUR. While investors await the further unfolding of events, the Canadian firm SNC Lavalin, which -10 figures for the potential buyer of the state package of shares of Energoprojekt Holding, will invest 175 million in the -12 modernization of mining and metallurgical complex basin (RTB) Bor. Tigar Pirot, thanks to investments of tens of millions of euros -14 in a new shoe factory, the largest in , but also installations BELEX 15 CROBEX 10 for the production of recucled technical rubber, increased exports SBI TOP BIRS to almost all continents. Monetary Board of the National Bank of NEX 20 Serbia (NBS) has decided to keep the referent interest rate at eight percent a year. Source: Official Websites Analysis: Intercity broker JSC

Belex15 Belexline 740 1.400

720 1.360 700 1.320 680 1.280 660

640 1.240

620 1.200 12-May 18-May 24-May 30-May 5-Jun 11-Jun 12-May 18-May 24-May 30-May 5-Jun 11-Jun

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Most Active Stocks of the Week Top Gainers/Losers of the Week

Traded Value Change Change Issuer Symbol Issuer Issuer (in RSD) (%) (%) Bambi Banat Energomontaža Alfa plam a.d. Vranje ALFA 75,796,117 +21.22% -11.90% a.d. Požarevac a.d. Beograd Kompanija AIK banka a.d. AIK banka a.d. Niš AIKB 17,641,114 +7.94% -6.76% Fidelinka a.d. Niš Energoprojekt holding Velefarm a.d. Privredna banka ENHL 6,991,499 +7.08% -6.34% a.d. Beograd Beograd a.d. Kosovsko Metohijska Dunav Energoprojekt KMBZ 5,340,300 +6.08% -6.15% banka a.d. Zvečan osiguranje a.d. holding a.d. Beograd Brail Trade a.d. Bačka Komercijalna BRTR 4,420,000 Vital a.d. Vrbas +5.14% -5.24% Palanka banka a.d. Business News of the Week News from the Belgrade Stock Exchange (BSE)

Telecommunications minister on Telekom sale ► Decision on temporary suspension of trading for shares of issuer - Banka Poštanska štedionica a.d. Beograd (PSBN) Telecommunications minister Jasna Matić says that the government ► Report from the Session of Shareholders' Assembly - Veterinarski will soon determine who and at what price can bid for a 40-percent zavod Subotica a.d. Subotica (VZAS) stake in Telekom Srbija. The government is expected to offer the state- owned telecommunications company package for sale later this year. ► Report from the Session of Shareholders' Assembly - Agrobanka The minister added that the market “can withstand such a sale without a.d. Beograd (AGBN) any kind of problems”. “We will have the assessment of the Telekom value in several months at the latest,” she told Belgrade daily Večernje ► Energoprojekt has concluded A 10,4 million USD new project in Novosti. According to her, the Telekom shares will be distributed to the Peru, and a 53 million EUR project in Serbia - Energoprojekt citizens after the privatization of the company, when it will be known holding a.d. Beograd (ENHL) how many will be given and how much they will be worth. The minister ► Convocation of Session of Shareholders' Assembly - Vital a.d. pointed out that the Republic Telecommunications Agency (RATEL) Vrbas (VITL) had recently made a decision to increase prices of landline telephony because they had been drastically lower than in the countries of the region. “But with the strengthening of competition I expect what's Foreign Investors Participation in Total Turnover currently going on in mobile telephony – where prices are dropping and where a large number of plans from various services are being 100% offered,“ she stressed. Matić also said that the government, after 90% issuing a landline operator license to Telenor, obligated itslef to create 80% conditions for the company could use Telekom's infrastructure, but that 70% the two companies were unable to reach agreement. She also said it 60% was “up to RATEL now” to resolve the situation. (Večernje novosti) 50% Incomplete projects delaying loan 40% 30% A USD 800mn Russian loan, meant for the Serbian Railways, is being 20% delayed by missing project design documentation. This is according to 10% Serbia's Traffic Institute CIP Director Milutin Ignjatović, who noted however, that negotiations were “going well”. Russians, said Ignjatović, 0% want all project-related documentation to be ready. The value of two 7-Jun 8-Jun 9-Jun 10-Jun 11-Jun prominent planned infrastructure works to be financed from the loan stands at USD 470mn. The two projects are the Belgrade railway hub, Total FIS b-FIS s-FIS FIB and the Valjevo-Loznica railway in the west of the country. “We have offered that they (Russians) come and start building the Valjevo- Loznica (railway), for instance. They could work for over a year, and Source: Belgrade Stock Exchange more, while we produce the project documentation for the remaining 40-kilometer stretch that is missing,” Ignjatović was quoted as saying. Foreign investor’s participation in turnover of shares (FIS) on But, he said, the Russians were not happy with this solution. “They do the buy-side (b-FIS) hit the highest point on June 11 (33.72%). not agree, and want everything to be arranged, and when they attack On weekly level, foreign investors participated in total b-FIS (sic) they will bring in more machines and contractors that would be 16.34% and in total s-FIS 34.68%. able to start working all at once,” said the CIP director. (B92) Republic of Serbia Bonds (Weekly Change & Yield)

Israeli company to open spice factory % Series 4-June 11-June Yield The Israeli Green Only company, which specializes in producing change spices, will be opening a factory in Serbia. Deputy Prime Minister Božidar Đelić and Israeli ambassador Arthur Koll will be at the A2011 96.32 96.42 0.10% 3.83% ceremony in the central town of Svilajnac. The equipment and factory 92.69 92.99 0.32% 3.75% itself is worth EUR 850,000 and will be geared toward spice A2012 production. Since most of the work will be done manually, it is A2013 89.23 89.55 0.36% 3.78% expected that Green Only will be employing more workers as it expands its capacities to 100 hectares of land. This will make Svilajnac A2014 85.92 86.33 0.48% 3.77% the center for production of spices and vegetables in Serbia. The ceremonial opening will also be attended by Agriculture Minister Saša A2015 82.80 83.03 0.28% 3.81% Dragin, officials from the Swiss embassy, and many local officials from 79.82 80.03 0.26% 3.80% Svilajnac. After the opening, Green Only will be organizing a A2016 presentation of its “Science Museum” project in the Svilajnac municipal Source: Belgrade Stock Exchange building. (Tanjug)

Middle Exchange Rate E U R / R S D Republic of Serbia T-Bills

104,0 103,5 (RSD) 103,0 102,5 This week only one auction of treasury bills was organized. 102,0 101,5 101,0 100,5 At the auction of 6-month T-Bills held on June 10, 2010 – 100,0 42.24% of the issuance worth RSD 6bln (EUR 25 m) was sold 99,5 99,0 at the interest rate of 10% p.a. The government securities will 12-May 18-May 24-May 30-May 5-Jun 11-Jun mature on December 9, 2010.

Source: National Bank of Serbia

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