Wednesday, 29 August 2007

Euronext Lisbon: The ugly duckling of today’s European sessions

Well almost all Europe managed to close gaining today. All Europe? No! A small stock exchange nearby the Atlantic Ocean resisted until the end keeping its red colours.

Things were a lot worse at the begging and at mid session but, even so, the end was a bit gloomy.

Volume was, again, fairly low. BCP made a lot of transaction, like it did yesterday, but not enough to wake the bull. In fact it had the worst performance of the day loosing 2,54%.

PSI 20 index closed at -0,11% with 9 stocks loosing money. Besides BCP, Mota-Engil (-1,62%) and (-1,24%) were the biggest losers of the day. In the bright side, above 1%, we had Sonae SGPS (+2,65%) and Portucel (+1,08%).

August is almost finished. Will next week be the one for the turning point in Euronext Lisbon? We will have ECB monthly reunion and will also have the end of holydays for most people. I guess there are a lot of Portuguese PSI-20 stocks at interesting prices. But is anyone paying attention?


Anonymous said...

I have been looking at Galp but it seems to close to its 52 week high. It performed phenomenal during the sell off and many people have not taken note of it yet. Do you think it is a good idea to buy during the next weakness? Is it a reliable company in Portugal? Thanks for any advice

Demetra said...

Is it a reliable company in Portugal? As reliable as it gets. On of the top 5 portuguese stocks for sure.
It moves according to oil price, it had a spectacular performance in the last two years (the Katrina effect paid off to Galp by opening doors to supply the US)...
Off shore oil field discoveries in Brazil and Angola have complemented the regular good news and they are probable to keep coming. It is also building up a new structure to enter in the electricity production.
Is it at a good price now? Some days ago the scenery seemed better than now to buy... It is very reactive to oil price as many other in the sector. But it all depends on your intention: long run investment?
Keep following it, maybe a good opportunity appears especially in these days of very low volume.

Please note: I’m far from being a market expert. You are at your own risk.