INTERCITY BROKER JSC WEEKLY REPORT BROKER-DEALER COMPANY Member of Stock Exchange th th Member of Central Securities Depository and Clearing house October 25 – 29 , 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

Up and down on BSE

The BSE has seen the turnover about 26.17% less than the previous Fluctuation of Stock Exchange week, but the number of transactions has recorded huge jump from Indices in the Region (1-m Change) previous 17,979 to 44,249 the last week. (%) At the beggining of the previous week AIK banka's shares (AIKB) has achieved level of RSD 3,208 mainly due to foreign investors which 5 with Greece-based ATE Bank have the majority shareholding in the bank. ATE Bank has a stake of 20% in the nominal capital of AIK Banka and was expected to sell the stake to increase its own Capital 4 base due to preassure on ATE's Capital problems. As Soja protein, Becej (SJPT) announced buying of it's own shares, 3 the price has jumped on RSD 814 level, and due to AIK banka (AIKB), Soja protein (SJPT) and Energoprojekt holding (ENHL) shares, Belex15 has recorded heavy jupm of 3.31% in first half of the previous 2 week. The shares of Serbian construction giant Energoprojekt holding, 1 Beograd (ENHL) has achived level of RSD 1,019 mostly due to expectations of further negotiations with Canadian construction company SNC Lavalin. Also, Energoprojekt holding, Beograd (ENHL) 0 has announced the election of President of Energoprojekt Holding Co. 29-Sep 5-Oct 11-Oct 17-Oct 23-Oct 29-Oct Board of Directors and Chief Executive Officer of Energoprojekt -1 Holding Co too. In the middle of the previous week we saw shrinking of turnover on BSE. At the second half of the last week we have seen decreasing of -2 value some of the most liquid company on BSE. Actually Energoprojekt shares (ENHL) dropped to level of RSD 936, AIK banka -3 shares (AIKB) to level of RSD 3,061 and Bambi Beograd (BMBI) has slid to level of RSD 17,605 at Friday. Serbian dinar has recorded slide of it's value, so shares of Serbian oil -4 giant NIS, (NIIS) has made move up to RSD 482 level. BELEX 15 CROBEX 10 SBI TOP On weekly level, Belex15 Index, a benchmark encompassing the most BIRS NEX 20 liquid shares of the BSE has heavy jump of 2.16% while the Belexline has jumped by 1.10%. Source: Official Websites Analysis: Intercity broker JSC

Belex15 Belexline 660 1.280

650 1.270 1.260 640 1.250 630 1.240 620 1.230 1.220 610 1.210 600 1.200 590 1.190 24-Sep 2-Oct 10-Oct 18-Oct 26-Oct 24-Sep 2-Oct 10-Oct 18-Oct 26-Oct

C O N T I N U O U S T R A D I N G M E T H O D

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

Traded Value Change Change Issuer Symbol Issuer Issuer (in EUR) (%) (%) JSC Credy banka, JSC Bambi Banat, JSC NIS, Novi Sad NIIS 1,083,038 +18.88% -11.23% Kragujevac Beograd

JSC Informatika, JSC Progres, JSC AIK banka, Nis AIKB 1,056,406 +14.89% -8.55% Beograd Beograd

JSC Globos JSC Politika, JSC Soja protein, Becej SJPT 250,073 +13.10% -7.27% osiguranje, Beograd Beograd

JSC Energoprojekt holding, JSC Komercijalna ENHL 245,830 +11.73% JSC Vital, Vrbas -6.13% Beograd banka, Beograd

JSC , JSC Cacanksa KMBN 151,578 JSC Tigar, Pirot +10.78% -4.17% Beograd banka, Cacak Business News of the Week News from the (BSE)

Delta takes over Si Market - Simpo sells six stores and two ► Nine month financial report for the period 01.januar - distribution centers 30.septembar in 2010 - JSC Alfa Plam, Vranje - ALFA About 5 million worth of six retail facilities and two distribution ► Elected Chairman of the Board and CEO – JSC Energoprojekt centers in Belgrade, Pancevo and Vranje, owned by Si Market, which holding Beograd – ENHL operates within Simpo, will soon be sold to Delta Holding, people at Simpo confirmed for daily paper Novosti. ► Statement on six months follow up the business plan for the As Novosti learns, the whole deal, that is, the sales agreement, should second half of 2010 – JSC Gosa montaza, Velika Plana – GMON be concluded within the next two weeks. At the same time, the negotiations are underway on the rental of certain markets, with the ► Press Release - The second issue of long-term bonds - Tigar ad mandatory takeover of workers, in order for the company's unity to be Pirot – TIGR preserved. That primarily applies to the facilities in Vranje. ► Statement on six months follow up the business plan for the The money obtained in this way will be used to cover a part of the second half year 2010 – JSC Albus Novi Sad, ALBS debts, while EUR 1m will be set aside for the social programme for the workers who want to leave the company voluntarily. (Novosti) Foreign Investors Participation in Total Turnover

Telekom Austria confirmed interest in acquisition of Telekom Srbija 100% Telekom Austria has confirmed its interest in bidding on the tender for acquisition of 51% stake in Telekom Srbija - Viennese Wirtscaftsblatt 80% wrote today. "Of course that we are considering all the options in the markets where 60% we are already present. We will take the documentation and check it", said the people at Telekom Austria, which is the owner of mobile 40% telephony operator Vip Mobile in Serbia. According to the Viennese economic daily newspaper, people at 20% Telekom Austria said that they would make the decision, together with their shareholders, on how economically profitable the acquisition of 0% the majority share of Telekom Srbija was. Serbian Ministry of Finance announced the tender on October 20 for 25-Oct 26-Oct 27-Oct 28-Oct 29-Oct sale of 51% of shares of Telekom Srbija, of which value is estimated at 2.43 billion euros. (Beta) Total FIS b-FIS s-FIS FIB

Government, IMF officials in agreement Serbian Deputy PM Jovan Krkobabić and the delegation of the IMF reached full agreement on Monday, reported Tanjug. The agreement Source: Belgrade Stock Exchange concerns the previously established project of reform of the pension and disability insurance system in this country. During the meeting with Foreign investor’s participation in turnover of shares (FIS) on IMF Head of Mission Albert Jaeger and Resident Representative in the buy-side (b-FIS) hit the highest point on October 29 Belgrade Bogdan Lissovolik, it was concluded that there are no (75.81%). On weekly level, foreign investors participated in differences in the interpretation of offered solutions in the Law on total b-FIS 63.14% and in total s-FIS 35.98%. Pension and Disability Insurance. Krkobabić will meet with the IMF representatives one more time during their stay in Belgrade, which Republic of Serbia Bonds (Weekly Change & Yield)

ends on November 2, Krkobabić's cabinet said in a statement in

Belgrade today. To date, Serbia has withdrawn EUR 1.45bn of that

arrangement to strengthen foreign currency reserves. The main themes of the talks were the rebalance of the 2010 budget 22 29 % Series Yield and the 2011 fiscal framework. New macro-economic trends will also October October change be discussed with IMF representatives who are staying in Belgrade until Nov. 2. A2011 97.73 97.02 -0.73% 5.30% The talks began with a meeting in the National Bank of Serbia (NBS), A2012 94.76 94.19 -0.60% 3.84% at which NBS Governor Dejan Šoškić, deputy prime ministers Mlađan Dinkić and Jovan Krkobabić, Finance Minister Diana Dragutinović and A2013 91.66 91.14 -0.57% 3.65% NBS Council of Governors President Boško Živković were present as the Serbian delegation. At a meeting between Prime Minister Mirko A2014 88.3 87.66 -0.72% 3.74% Cvetković and Finance Minister Diana Dragutinović and the IMF Mission, led by Albert Jaeger, it was agreed that the government would A2015 85.39 85.07 -0.37% 3.59% adopt amendments to the Law on Pension and Disability Insurance A2016 82.3 82.09 -0.26% 3.59% and forward them to the Serbian Parliament before the end of the sixth revision of the loan arrangement. (B92) Source: Belgrade Stock Exchange

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

107,5 (RSD) 107,0 At the auction held on October 26, 2010, has been sold 12- 106,5 month T-Bills, worth RSD 400 mil (EUR 3.73m), at the interest

106,0 rate of 13.60% p.a. The government securities will mature on October 25, 2012. 105,5

105,0 At the auction held on October 28, 2010, has been sold 6- month T-Bills, worth RSD 3,948 mil (EUR 36.80m), at the 104,5 24.09.2010. 01.10.2010 08.10.2010 15.10.2010 22.10.2010 29.10.2010 interest rate of 12.80% p.a. The government securities will mature on April 28, 2011. Source: National Bank of Serbia

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