According to capital market participants in Montenegro, bond emissions valued at 50 million euros are unlikely to occur, as they have yet to receive an official response from the Ministry of Finance, as reported to Radio Montenegro.

Currently, the capital market in Montenegro is poised to experience its worst performance this year compared to the last five years. Brokers, anticipating bond emissions as a new investment vehicle, suggest that the domestic market remains a worthwhile investment.

The August announcement regarding the bond issue came from Minister Novica Vuković during the presentation of the draft fiscal strategy. This initiative was intended to rejuvenate the local capital market. If the bond emissions do not materialize, this year will likely see the lowest recorded traffic and transaction volume in five years.

“The greatest demand is currently from the most recognized companies in our market, which are profitable and maintain a consistent dividend policy. These include the Montenegrin Elektropnosis System (CGES), Montenegrin Telekom, Jugopetrol, and Elektroprivreda,” stated VIP Broker CEO Ivan Šćepanović, as reported by RTCG.

Citizens currently have a record amount of savings in banks, totaling over two billion euros. With cumulative inflation nearing 30 percent over the past three years, their money has significantly depreciated. Šćepanović noted that those who invested in the stock market during this period could have at least matched that loss through returns.

“Returns were achieved partially through dividends and also through price appreciation. This potential still exists and will continue in the future,” said Šćepanović.

Investors on the Stock Exchange are primarily evaluating companies. Šćepanović is optimistic that the bond market will soon expand as promised, yet emphasizes that this financial instrument must appeal to citizens.

“The lot size should not be excessively high, ideally keeping it below a thousand euros. Furthermore, bond terms should not exceed three years; a two-year term would likely be more appealing to citizens. It would be illogical to expect success in bonds if the interest rate offered is excessively low, such as three percent,” added Šćepanović.

He recommends investing in liquid stocks from companies that demonstrate strong business performance, noting that domestic brokerage firms also provide opportunities for trading on international markets.