Podgorica – Foundation and the arrival of foreign investment funds, implementation of new instruments for trading and modernization of dealing of Central deposit agency will give a new flywheel to the development of Montenegrin market funds in the year 2007.
The deputy of the president of the Commission for currency papers Drasko Malbaski thinks that in the year 2007 the market of funds will definitely lose the epithets of wide national market, as, until now, it was the case because of the bond privatization.
-All the happenings in the2007 I think will be determined by the changes and amendments of the Law of currency papers which are already made. There will be implementation of new instruments of short term currency papers, mortgage papers and various types of bonds – said Malbaski. He added that there will be a modernization of entire software solutions in Central deposit agency and on the stock markets.
-That will, I believe, draw some changes in the broker houses too, firstly in the communication with CDA. We are trying to change the entire system of CDA in the year 2007, billing to be reduced on to two days, and make brokers have the possibility to transfer currency papers from deposits and from account to an account – explained Malbaski.
He mentioned, also, that the new regulation will allow the trading with Montenegrin currency papers on foreign markets, as well as the sales of foreign currency papers on our market.
The director of Holder broker, Dejan Vasovic, thinks that the continuation of the process of privatization of certain companies in the year 2007 will reflect positively on the total development of the market funds.
-Significant influence and positive impulses on the development of the market of funds will give a constitution of voluntary pension funds which will be formed based on the new Law. Also, a positive reflection will have the foundation of new investment funds as well as the implementation of short term currency papers, based on the amended Law on currency papers. These papers will give a new and a strong flywheel to further locomotion on the market and will be in the function of its further development – stated Vasovic.
The director of the privatization fund MIG, Dragan Radusinovic, said that in the past year he did not expect such a strong growth of price of stock shares as it was the case between referendum and parliament elections.
The market after that until the end of the year has mildly stagnated which was to be expected after a great boom. In the year 2007, I believe, one should not expect a great growth as it was the case last year, but I think that foreign institutional investors will come and that several new funds in Montenegro will be opened which of course will invest a part of the great funds in those stock shares. That demand will provoke growth of value of stock shares and we would be pleased is that growth is between 20 and 30% – considers Radusinovic.
He thinks also that privatization funds in the year 2007 can not expect the growth as it was the case in the year 2006, but he also expects that the gross active of the fund will be raised for about 30%.
STRONG INVESTORS ARE SEEKING FOR SAFETY
-The holding of the parliament of stock share holders out of dead lines predicted by law and the no visible transparency in dealing of companies are the basic problems of the Montenegrin market of capital. On the other hand, in the last few years, it has come up to the three digit percents so now a realization of profit of investors and their moving to some other safer markets where there exists a corporative management of companies and where there are codex’s if behavior of companies, can happen – said for “Vijesti” man from Split, Miroslav Jelicic, one of the main stock market players in the region.
If some significant changes which would give to the investors some institutional safety during the investment, do not occur, he noted that his “expectations in the year 2007 are not most optimistic”.
-The only thing that is good is that the companies KAP and Telekom have started to have profit. Positive changes in Montenegro are happening, but they are very, very slow. With coming close to EU, the changes will have to be sped up largely. The entire system CDA needs great changes. We need to develop fund industry – said Jelicic.