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%.

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