INTERCITY BROKER AD Monthly BROKERSKO-DILERSKO DRUŠTVO ČLAN BEOGRADSKE BERZE AD BEOGRAD Report ČLAN CENTRALNOG REGISTRA, DEPOA I KLIRINGA HoV Maksima Gorkog 52, Beograd, Srbija Tel: +381 (11) 3083-100, 3087-862; Fax: +381 (11) 3083-150 e-mail: [email protected]; www.icbbg.rs February, 2016

Negative tendencies continue in February

Although smaller, in February 2016, continued the negative trend of both stock indices. So, the index BELEX15 fell by 2.32% (up to the value of 587.70 points) and BELEXline by 1.85% (to 1,289.38 points). Besides a number of known factors such as lack of liquidity and lack of quality market material, this trend index was also influenced by the announcement of the upcoming elections that always bring great uncertainty for investors.The participation of foreign investors in trading in February stood at 53.63%, with the recorded total turnover of about 5 million EUR.

- Shares of the Petroleum Industry of JSC (NIIS) ended the month of February at the level of 539.00 dinars with a turnover of 102,786,721 dinars (price decline of -3.92% on a monthly basis). The company in 2015 generated a net profit of 14.6 billion dinars. Although financial ratios are lower than in 2014 due to a steady decline in crude oil prices, they are still well above planned for 2015. During the month of February, share price ranged from 527.00 to 576.00 dinars.

-Shares of the company Airport Nikola Tesla JSC (AERO) ended the month of February at a price of 935.00 dinars with a turnover of 17,253,254 dinars (price decrease of -1.37%). During this month, the company achieved the highest regularity of plane departure on a monthly basis. Over 93% of flights are initiated without delay, which is the reason the airport became a candidate for a place on the prestigious list of 20 airports in the world with the most regular departures. During the month, the price of this share ranged from 886.00 to 995.00 dinars.

- Shares of Energoprojekt Holding JSC (ENHL) ended the month of February at a price of 928.00 dinars with a turnover of 79,394,983 dinars (price decrease of -7.01%). The company announced that it has contracted several new jobs in this month: Energoprojekt construction JSC (Contractor) and Energoprojekt Sunnyville Ltd (Purchaser), concluded a contract for the construction of residential and office complex on the location Visnjica - contract value 9.5 million EUR completion deadline 16 months; Energoprojekt Equipment JSC signed a contract for execution of works on infrastructure facilities for a new landfill in the RB Kolubara coal worth 15.5 million EUR deadline 18 months; Energoprojekt Entel JSC concluded a contract for the provision of consultancy services for the expansion of the electric power system of . The value of this contract is $ 35 million and the deadline 36 months. Despite these favorable news, the price of this share ranged from 900.00 to 989.00 dinars.

- Shares of Messer Tehnogas JSC Belgrade (TGAS) ended the month of February at a price of 8,150.00 dinars (growth rates of + 3.16%) with a turnover of 10,813,406 dinars. During the month, the price of this share ranged from 7,776.00 to 8,200.00 dinars - Shares of Galenika Fitofarmacija JSC, Zemun (FITO) ended the month of February at a price of 2,202.00 dinars (price decrease of -0.63%) with a turnover of 16,564,155 dinars. The price of this share ranged from 2,202.00 to 2,299.00 dinars.

- Share of company Metalac JSC, Gornji Milanovac (MTLC) finished the month of February at a price of 2,621.00 dinars (growth rate of + 5.26%) with a turnover of 27,594,286 dinars. During the month, the price of this share ranged from 2,460.00 to 2,621.00 dinars.

- Shares of company Imlek JSC, Belgrade (IMLK) in February increased by + 0.83% and ended the month at 5,106.00 dinars. The lowest price reached during the month was 5,064.00 dinars, the highest 5,200.00 dinars

- The most traded shares from the banking sector in February were again the common shares (voting shares) of AIK Banka JSC Belgrade (AIKB) - whose price at the end of the month was 1,800.00 dinars (price decrease of -1.64%), with a turnover of 22,224,601 dinars. During this month was announced a Takeover Offer by MK Group, which is the majority owner of the bank. The offer has been given for all the types of shares of this bank, and offered price for the purchase of ordinary shares is 1,800.00 dinars.

Belex sentiment (an indicator which shows investors' expectations) was 116.93 points, indicating the positive investor expectations for the month of March. Treasury bills: During the month of February were held two auctions of treasury bills and 4 auction of government bonds of the Republic of Serbia. At the auction of three-month treasury bills yield was 2.75% and for 53-week bills yield was 4.09% annually. Two-year depreciation government bonds are sold with a fixed margin of 0.45% and three-year bonds with a yield of 5.95% annually. At the auction of two-year government bonds denominated in yield was 1.75% (plus a coupon of 1.50% annually) and for a three-year government bonds rate of return was 3.25% (plus a coupon of 2.00 % annually). Long-term debt securities (government bonds): During the month of February the next bonds were traded:

- Series RSO15118 - last price 98.4793, total turnover 224,014,637 dinars (http://www.belex.rs/trgovanje/hartija/dnevni/RSO15118) - Series RSO15127 - last price 103.3728, total turnover 732,379,002 dinars (http://www.belex.rs/trgovanje/hartija/dnevni/RSO15127) - Series RSO1470 - last price 115.1347, total turnover 230,269,400 dinars (http://www.belex.rs/trgovanje/hartija/dnevni/RSO1470) - Series RSO15105- last price 119.7812, total turnover 119,781,200 dinars (http://www.belex.rs/trgovanje/hartija/dnevni/RSO15105) - Series RSO15102 - last price 111.1186, total turnover 111,118,600 dinars (http://www.belex.rs/trgovanje/hartija/dnevni/RSO15102). C o n t i n u o u s t r a d i n g m e t h o d T h e m o s t t r a d e d s h a r e s t h i s m o n t h Winners / Losers of the month (without block trades) Value % % Issuer Symbol Issuer Issuer (in EUR) change change Montinvest JSC Globos osiguranje +19.39% -31.76% NIS JSC NIIS 832,278 Beograd JSC Beograd Institut za strane Valjaonica bakra Energoprojekt Holding ENHL 642,872 jezike JSC +14.33% Sevojno JSC -28.91% JSC Beograd Beograd Sevojno

Alfa plam JSC Progres JSC Imlek JSC Beograd IMLK 241,385 +5.54% -16.67% Vranje Beograd Metalac JSC Gornji Metalac JSC MTLC 223,435 +5.26% Tigar JSC Pirot -14.29% Milanovac Gornji Milanovac

Energoprojekt AIK Bank JSC Messer Tehnogas AIKB 179,956 industrija JSC Beograd JSC Beograd +3.16% -14.21% Beograd

Business news in February News from

Key Policy Rate Cut to 4.25% ► BELEXsentiment for February 2016 - http://www.belex.rs/eng/trgovanje/vesti/61407

► New contracts signed in Qatar, UAE and - Energoprojekt holding a.d. , Beograd The NBS Executive Board decided in its meeting - http://www.belex.rs/data/2016/02/00097546_E.pdf today to cut the key policy rate by 0.25 pp, to 4.25%. ► Belgrade SE joins SEE-Link - http://www.belex.rs/eng/trgovanje/vesti/61515

The Executive Board also adopted amendments to ► A new contract in Serbia signed - Energoprojekt holding a.d. Beograd - the Decision on Interest Rates Applied by the http://www.belex.rs/data/2016/02/00097570_E.pdf National Bank of Serbia, narrowing the interest ► NIS publishes Audited Consolidated Financial Statements for 2015 - NIS a.d., Novi rate corridor from ± 2.0% to ±1.75% relative to the Sad - http://www.belex.rs/data/2016/02/00097585_E.pdf key policy rate. The amendments were put through in an effort to contribute to further ► Consolidated financial statements for 2015 - NIS a.d., Novi Sad - stabilisation of interest rates in the interbank http://www.belex.rs/data/2016/02/00097588_E.pdf money market, gradual reduction of the spread between the effective rate and the key policy rate, and strengthening of the interest rate transmission channel. Participation of the foreign investors

Total FIS The Executive Board assessed that year-on-year 100% inflation will rise moderately from the middle of the 80% year and return within the target tolerance band late this or early next year. 60% 40% The National Bank of Serbia will continue to 20% monitor closely the developments in the 0% international environment and use all available instruments, to keep inflation low and stable, as this, together with preserving financial stability and 1-Feb 2-Feb 3-Feb 4-Feb 5-Feb 8-Feb 9-Feb 10-Feb 11-Feb 12-Feb 17-Feb 18-Feb 19-Feb 22-Feb 23-Feb 24-Feb 25-Feb 26-Feb 29-Feb a relatively stable exchange rate, is a precondition to accelerated but sustainable economic growth. Total FIS Moreover, progress in fiscal consolidation and ensuring sustainability of public finances, The participation of the foreign investors in share trading (FIS) was highest on February 17th – improvement in the business and investment 89.56%. In total amount, the participation of foreign investors in buying of shares was 37.57%, environment, and the narrowing of external and 69.68% in selling. imbalances will be of great assistance in moderating the effect of any external shocks. The National Bank of Serbia expects that the continued monetary easing will lead to a further Savings bonds – monthly change and yield decline in lending rates and sustained recovery in lending, which will contribute to higher investment. The Executive Board also adopted the February Series Jan-29-2016 Feb-29-2016 Change % Yield Inflation Report, which will be presented to the public on Friday, 19 February. A2016 99.21 99.21 0 3.20%

The next rate-setting meeting will be held on 17 Source: Belgrade Stock Exchange March 2016.

Source: NBS On monthly level, total trading value of Saving bonds A2016 was 11,714,468 EUR, with yield of 3.20% (on February 29th 2016). These are Leaders of Change 2016 in Serbia Exchange rate (EUR/RSD) At the ceremony held at the Town Hall last night, Leaders of changes awards were delivered by the (RSD) American Chamber of commerce in Serbia 125,0 (AmCham) is delivering for the third time in a row 122,0 in order to promote best examples of business in 119,0 Serbia. 116,0 113,0 110,0 Awards for the best business results, innovation, 107,0 ethics and corporate social responsibility were 104,0 delivered to Nelt, Lei Stanković from Communis 101,0 agency, Andrea Brbaklic from Erste bank, Telenor, 98,0 95,0 Dejan Turk from Vip, Predrag Mitic from Hewlett- 01.02 05.02 09.02 13.02 17.02 21.02 25.02 29.02 Packard Enterprise and Mathematics high school.

The jury’s task was to generate a list of nominated and prepare short-listed candidates based on the applicants and assign a special Hero award. Source: National Bank of Serbia

Companies, members of AmCham in Serbia voted for candidates on spot electronically, based on the one company-one vote principle.

Source: ekapija DISCLAIMER: The information and any opinions, estimates and forecasts have been obtained from sources believed by Intercity broker to be reliable but without representation or warranty express or implied is made by us as to their accuracy or completeness. This report is provided only for information purposes. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security. The information, opinions, estimates and forecasts may well be affected by subsequent changes in market conditions. This document may not be reproduced in whole or in part or published for any purpose.