Analysis of the Serbian Capital Market

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Jelena Minović
Vlastimir Vuković


This paper analyses the Serbian capital market. Its main characteristic is that it is a very narrow and depth lacking market. For analysis we used data from the Belgrade Stock Exchange (BSE), Republic of Serbia Securities Commission (SEC), and National Bank of Serbia (NBS). The crisis has negatively influenced on the capital market in Serbia. Due to this fact, the analysis was done by dividing into two sub-periods: before the crisis (2006 – 2008), and during the crisis (2009 – 2011). Results showed that turnover decreased for over 70% for both BELEX indices, while the whole capital market has notably recovered thanks to an extensive borrowing of the state. Stock market capitalization has fallen. Results of analysis showed that government debt securities dominate after the crisis on the capital market (93% in 2011), while other shares from privatization make a negligible part of the market (equity market dropped for over 10 times from 2006 to 2010). We concluded that the privatization in Serbia significantly influenced on the features and volatility of the capital market in Serbia.

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