There are only seven companies in Serbia that rank in the top 500 in Eastern Europe. Investors look for more choice. Maybe with the future IPO's of JATA, Telekom and Galenika that will change. Of the 800 joint stock companies, which are listed on the BSE, only 34 have sufficient trading volume. For example, if I would now like to buy Messer Technogas, on the basis of the current valuation on the BSE, one would need a year to build a small position of around 100,000 dollars. This will change when Serbia develops active domestic investors, who buy and sell regularly. In the meantime, why would anyone buy such an illiquid company although it has value?
On the positive side, six-month bonds issued by the Ministry of Finance with a yield of 13.99 percent is not bad.
To see the rest of Daniel Broby's (CIO of Silk Invest) interview with Blic, Serbia's leading newspaper, see the following link.
http://www.blic.rs/ekonomija.php?id=101139
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