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Wrap Up The ended this 3 day work week with poor liquidity, and lower volume than last week, 894thousands vs 3.8mn EUR in previous week. The Belex15 went down 1.08% to 493.68 points, and Belexline finished the week with 8.91% drop, at 968.28 points.

Number of active issues this week was 55, of which 12 posted gains, 18 posted losses and 25 issues finished without a price change.

Foreign investor overall participation was 59.97%, with 69.44% of the buy side volume and 50.51% of selling volume. The winners for the year were Univerzal Banka a.d Beograd (UNBN) +6.98%, Jubmes banka a.d. Beograd (JMBN) +3.42%, Veterinarski zavod Subotica a.d. Subotica (VZAS) +1.56%. Losers of the year were Agrobanka a.d. Beograd (AGBN) - 17.88%, Jedinstvo Sevojno a.d. Sevojno (JESV) -4.08%, Tigar a.d. Pirot (TIGR) -3.06%. (NIIS) ended the week with low volume and weak activity and investor interest. Aerodrom Nikola Tesla (AERO) decline in prices with drastically reduced turnover. (ENHL) as last week, traded with a bigger package than 10,000 pieces. Price was on the same level in anticipation of the continuation of shareholders assembly that will be held on 12.01.

In Fix Income and FX: The Dinar declined 0.59% against the , ending the week at 105.25

At Thursday’s auction it sold over 5.92 billion dinars worth of 6m Treasury bills, or 98.68% of the total offer. T-bills were sold at a discount interest rate of 10.59%, down from 10.85% at the previous auction held on December 8.

In Other News: Serbian oil company Naftna Industrija Srbije (NIIS) ad‘s net income probably rose to more than 300 million ($383.3 million) last year. NIIS may continue reinvesting its entire profit rather than pay dividends to increase value, which could push the share price to 1,000 dinars.

There was a realistic chance Serbia would maintain macroeconomic stability in 2012 said Serbian prime minister Mirko Cvetkovid’s economic advisor Jurij Bajec. He believes that macroeconomic stability will be maintained regardless of the

influence of the crisis coming from abroad, because the government has set aside around EUR 1.5bn in the budget for capital projects and EUR 600mn for subsidies and has also signed a precautionary arrangement with the International Monetary Fund (IMF). As far as monetary policy, Bajec expects the National Bank of Serbia (NBS) will be able to keep inflation at a considerably lower level than last year, along with the reference interest rate, which means business banks will be able to cut their interest rates which in turn means cheaper business and retail loans.

Budget for 2012 provides amount of 11.572 billion for the recapitalization Komercijalne banke (KMBN). By the end of the year is the deadline when the Serbia needs to show intent in terms of ownership in the bank. For now there is no intention on its sale. Republic of Serbia is the largest and most significant shareholder of the bank and owns 3,709,840 common shares, which is 42.6% of the total ordinary shares or the number of votes at shareholder meetings.

Upcoming Events: 53W t-bill auctions are scheduled on Tuesday, Jan 10th

InterCapital Equity Sales contacts: Sasa Jovanovic, broker; telephone: +381 11 3809 984; e-mail: [email protected] Dusan Jovanic, broker; telephone: +381 11 3809 985; e-mail: [email protected]