BELEX indices ended the last week with solid gains, primarily impacted by new jumps at Komercijalna Banka. BELEX15 added 1.63% w/w, while broad BELEXLine was up 0.73%. Major issue was probably privatization of Komercijalna, since it delivered RSD 194m in total trade volume, far higher than all others, while the stock was up 8.5%. Local press writes that several larger regional banks are interested in acquiring the largest Serbian bank, among which are NLB, Raiffeisen and perhaps domestic AIK Banka. Smote bigger funds were also mentioned, such Ruppel Advisories.
From the macro side, we had some fiscal issues as a topic. The draft Fiscal Strategy for 2020, with projections for 2021 and 2022, envisions a well-set fiscal deficit of 0.5% of GDP and macroeconomic stability, the Serbian Fiscal Council said at a press conference Thursday. Under the initial targets, the public debt is to be reduced by 2 pp of GDP a year and approach the level of 45% of GDP in 2022.