Sunday, 23 September 2007

Galp enters Euronext 100 in the 1st of October

A brief interruption of may holydays just to give these info:
On the 1st of October:

  • Galp Energia will enter in Euronext 100
  • PT Multimedia and Banif will enter Euronext 150

Other portuguese companies already in Euronext 100: BCP, BES, BPI, EDP and Portugal Telecom.
Other portuguese companies already in Euronext 150: Cimpor, Jerónimo Martins, Mota-Engil, Portucel, Semapa, Sonae Industria, Sonae SGPS, Sonaecom and Teixeira Duarte.
Source: Diário Económico.

Tuesday, 18 September 2007


Holiday time. I'll be back in two and a half weeks - if there is still a stock exchange to return to ;-)

P.S.: I leave with all the stock exchanges recovering significantly (Euronext Lisbon, barely).

Monday, 17 September 2007

Confidence where are you? Euronext Lisbon plummets, again.

The Portuguese GDP is better than in the previous years, the enterprises have quite reasonable financial data and results, despite the turbulence concerning BCP the banking system doesn't seem to have a particular problem in these days so... Why again the worst performance in Europe?
PSI 20 index lost 1,97%. Some of the stocks moved quite a lot in volume today (BCP, Sonae.SGPS and EDP, for instance). Why this overshooting? Is it an overshooting or is it just the consequence of a sub-prime free float level? Why did all the investment funds left the country - have they?
No more words just take a look:

Quote Var %

Altri, SGPS, SA
5,03 -7,36
Jeronimo Martins-SGPS
3,84 -6,34
Mota-Engil, SGPS
5,12 -6,22
Sonae SGPS
1,67 -6,17, SGPS
3,25 -5,79
Impresa, SGPS - Nom.
2,35 -5,24
5,94 -4,96
Sonae Industria SGPS,SA
8,38 -4,88
S.C.Soares Costa
2,17 -4,40
3,45 -3,84
5,93 -2,46
Redes Energéticas Nacionais
3,45 -1,98
Espirito Santo Finl Group SA
28,50 -1,55
9,08 -1,51

8,38 4,88

PSI 20
11878 -1,97

Injured: several stocks went on a bad weekend

For once PSI 20 index stayed on the average, in European terms, it lost 0,64%.
BCP lost 2,2% and was blamed for the bad day due to its high weight in PSI 20 but if you take a look you'll notice that only four stocks rose last Friday, with Brisa leading, and many registered huge punches.

Name Quote Var %

S.C.Soares Costa 2,27 -5,02
Altri, SGPS, SA 5,43 -4,56
Mota-Engil, SGPS 5,46 -3,53
Sonae Industria SGPS,SA 8,81 -3,29, SGPS 3,45 -3,08

Brisa 9,22 1,31

Thursday, 13 September 2007

BCP explains just a part of the story

While in the rest of Europe valorisations of about (or even more) than 1% were the rule, PSI 20 managed to slide again to the worst performance of the day by losing 0,73%. The media point the finger to BCP's 1,54% decrease but watch closely to the top presented below. Impressive variations! for instance has devaluated (almost) steadily since mid July (more than 20%).

Name Quote Var %
Altri, SGPS, SA 5,69 -4,04
Impresa, SGPS - Nom. 2,50 -3,84
Mota-Engil, SGPS 5,66 -3,74, SGPS 3,56 -3,52
Galp Energia 10,41 -2,43
Cimpor-C.Port.SGPS-Nom. 6,17 -2,37
Sonae Industria SGPS,SA 9,11 -1,72
BPI-SGPS-Nom 6,20 -1,58
B.Comercial Portugues-Nom 3,18 -1,54
Brisa-Nom.(Privatiz.) 9,10 -1,30
SEMAPA-S.Inv.Gestao,SGPS 11,70 -1,18

Wednesday, 12 September 2007

PSI 20 index: A moderate fall: 0,18%

In a mixed day, the fall of two of the main Portuguese stocks, Galp (-0,92%) and EDP (-0,75%), contributed decisively to the final outcome of PSI 20: -0,18%. Remember that Galp came from big wins in the last days.

Semapa was the biggest loser of the day with the quote falling 2,06%. In the opposite extreme Mota-Engil gained the most, climbing 1,37%.

9,9% loss since July the 19th

Since July, 19th (the date of the mini-crash) Euronext Lisbon registered the third biggest fall (9,9%) among the 18 European stock exchanges from the most developed countries. The loss equals 9 783 million euros. Iceland and Ireland topped the list.

This is a loose translation of a report from Jornal de Negócios.

Tuesday, 11 September 2007

PSI 20 index: one of the smallest recoveries in Europe

PSI 20 Index recovered 0,9% of it value with 13 companies in the green. Some of the biggest fall of yesterday are also among the biggest recoveries of today, like Mota-Engil (+4,12%), Altri (+3,97%) and Soares da Costa (3,91%). It was a good day for construction companies. But the star of the day was GALP (Petroleum / Energy) that climbed 5,58% in one single session. The oil prices in the international market played a big role in this valorisation. Cimpor (-0,79%) and Brisa (-0,32%) leaded the falls accumulating losses in the last few days.
Yesterday, in a negative day all over the world, Euronext’s PSI 20 was the worst performing European stock index, today in the middle of a recovery, PSI 20 is again one of the worst performing European indexes. As I’ve said before, the aphorism “One step forward, two step backwards” is becoming the motto for the Portuguese stock exchange in the last weeks. Is there something fermenting in the horizon? In a small stock exchange strange things happen often. Beware!

Euronext Lisbon – the worst performing Stock Exchange in Europe during August

According to the math done by Diário Económico, Euronext Lisbon’s PSI 20 index lost 3,7% in the past month of August leading by far the worst-off ranking in the European Stock Exchanges. The second worst was the Spanish IBEX 35 that lost 0,01%.
August was also a record breaking months in investment fund liquidations by the Portuguese investor that decided to put their money else where.
Today after an initial big push with PSI 20 climbing almost 1%, the session fallows at this moment with gains of 0,5% (9:50 GMT). The vast majority of the quotes are still far behind the initial values of yesterday’s session, with the exception of EDP (+0,77%).

Monday, 10 September 2007

PSI 20 index - The higher the rise the bigger the fall

Why did Cimpor fall 5,82%? And what about falling 5,42%? What was the reason behind Mota-Engil fall of 5,11%? Sonae SGPS fell 4,76% because…

What is the main reason to explain the decrease of more than 3% in Rede Electrica Nacional, Soares da Costa and Altri?

Volatility is not an answer, it is just a label or a symptom. Euronext Lisbon, one of the most high profile stock exchanges in the last years, kept it by the book at least in one aspect: continues to be high profile now that is loosing harder than most European stock exchanges.

Today, Euronext Lisbon was one of the few stock exchanges that never really “believed” that this would be a recovery day for Europe. And it was right, this Monday was the second day in a row with heavy losses in most of the stocks (and the forth consecutive negative session). Volatility is the middle name of today’s market but also dispersion: there is no safe haven for these times of financial turmoil. Well… one of the big ones did escape: EDP (Energy) maintained Fridays price at the end of session (like PT Multimédia).

PSI 20 index lost 1,65%.

Friday, 7 September 2007

Another mini-crash where Euronext Lisbon wasn’t an exception

1. Bad macro-economic indicators in the States,

2. generalized feeling of a painstakingly and inevitably slow recovery,

3. Small investors coming back from holidays still trying to grasp the big picture

4. Several big players in a “wait and see” perspective

Consequence: another mini-crash.

At 15:37 GMT, PSI 20 index was loosing 2,09% with all the stocks in the read: 13 out of 20 were falling more than 2%. Altri was “leading” with a 4,70% crash.

Update: PSI closed at -2,57%.

Thursday, 6 September 2007

Euronext Lisboa: The day ECB didn't budge

ECB didn’t fiddle with the interest rate and the stock exchanges had a very nervous day, with significant losses until mid session and some recovering afterwards. But this movement wasn’t stable or generalized. Euronext’s PSI 20 closed losing -0,28%.

Almost all is said, ECB needs additional information to decide what to do with its monetary policy in the near future. So do the stock exchanges, specially the European ones.

Wednesday, 5 September 2007

The fear of a nearby recession?

What if real economy is already signalling that it has been harmed by the financial crisis?

The latest results from de European, and mainly from the North American economy seamed to provide reasonable doubt to the markets today and the result is at sight: significant fall in all major stock exchanges.

Euronext Lisbon was no exception. The session ended with a -0,52% decrease on PSI 20 index which was quite mild compared with IBEX 35 (-2,40%), CAC40 (-2,14%), Eurostoxx50 (-2,06%) or Dax Xetra (-1,73%).

Seventeen out of 20 companies from PSI 20 lost value today, with Altri, Cimpor and Semapa leading the losses, all above 2%. Only BCP (+0,87%) and BES (+0,16%) balanced the generalize tendency. In fact, BCP’s behaviour (and its weight in PSI 20 index) largely justifies the not so bad global result of the Portuguese index.

What’s next? Tomorrow is ECB meeting day…

Tuesday, 4 September 2007

PSI 20 Index - Seven shares gained more than 1% today

  • The last hour of negotiation lead Euronext Lisbon to a clear rise. It’s PSI 20 index gained 0,25%. The 2,01% fall in BCP stock price shadowed the significant gains by Altri 5,12% (great expectations in the upcoming results here), Banco Espirito Santo 3,42% and Brisa, 1,70%, to refer only the three most impressive movers. The positive openings in the US stock exchanges played, again, a very important role in the closing figures all over Europe.
  • Eurostat confirmed today that in the second quarter the European economy (Euro area) decelerated a bit putting some more pressure in the European Central Bank. Will it keep the “promise” to raise interest rates next Thursday?

Monday, 3 September 2007

Mota-Engil climbs more than 13% in two days (Euronext Lisbon)

Mota-Engil (ME) won a contract for the construction and exploration of a uranium mine in Malawi. It will represent a 168 million dollars business for the company. The first big business in Africa for ME. This is the main reason for the 7,73% increase in ME stock price in today's session. It ended at 6,13€. If you remember (see below) Friday it had already inflated more than 4%. At the time the reason for the boost was the final balance from Martifer’s IPO – a participated company of ME universe (ME owns 37,5% of the stocks). Now all seams a little bit doubtful. The gain from the IPO should have been already reflected in the price, after all the math was simple and the data already known. So… Could it be that someone “anticipated” in the market this big news of last night that fuelled today's session? Again, suspicions of inside trading are justifying some wrinkled noses in the market analysts. Will this lead to a follow up by the market police (CMVM)?

PSI 20 index gained 0,69% (one of the best results in Europe, today) with 14 of the 20 companies in the green. Besides Mota-Engil, Semapa (+3,98%) and Sonae SGPS (+2,02%) were the top three climbers of the day.

Redes Electricas Nacionais (REN) that started today to compose PSI-20 Index lost slightly (-0,26%).