Conference Paper

The main threats to the securities market are coming from deepening the crisis in the real sector of the national economy, especially export oriented companies, which if are not able to recover soon, will cause a foreign exchange crisis in the country and possible devaluation of denar. This situation will ruin further the liquidity on the stock market. Only positive signals from EU on starting membership negotiations or NATO membership next year, can create positive expectations and possible entry of foreign institutional investors on the local securities market. These expectations can boost the market earlier, create higher liquidity and increase the stock prices.