NIS shares soar 10 percent after announcement of company's business results

Shares in the biggest domestic company on the stock exchange, the Petroleum Industry of Serbia (NIS), soared 10 percent in yesterday's trading, after the company's unaudited financial results for the year 2011 were published on Friday.

As NIS CEO Kiril Kravchenko said, this company turned a net profit of RSD 40.6 billlion last year (the projected net profit amounted to RSD 36.9 billion), whereas EBITDA climbed 62% to RSD 54.2 billion (the projected level was RSD 50.9 billion).

The company's business results were announced Friday, after the end of the previous trading week, so that everybody were impatient to see the reaction of investors in Monday's trading.

At the very opening of the stock market, NIS shares surged 10 percent and hit the upper limit of the fluctuation band of RSD 725. A major share of the RSD 35.3 million turnover was made at that level, while the share price at the closing dropped to RSD 724.

The last time that NIS shares were at this level was in mid-September, while their highest price ever was registered in early August 2011, when it amounted to RSD 865.

NIS shares have gained close to 20 percent in value since the beginning of this year. With the latest share price of RSD 724, the company's market capitalization amounts to RSD 118.1 billion (EUR 1.09 billion).