Lisbon‘s stock exchange closed lower on Friday, marking a mixed day for major European markets.The decline was largely driven by a nearly 3% drop in shares of Banco Comercial Português (BCP).
Portugal’s benchmark PSI index fell 1.18% to 6,336.31 points. Eleven of its fifteen constituents ended the day in the red, with only three showing gains. The index, which had initially opened higher, ultimately lead losses across europe.
BCP led the decline, plummeting 2.96% to €0.4397. This mirrored a broader weakness in the European banking sector, which had surged the previous day. Galp Energia followed suit, dropping 1.92% to €16.39.
Retail stocks also contributed to the losses, with Jerónimo Martins falling 1.23% and sonae declining 0.65%. Paper companies also faced a challenging day, with Semapa down 1.86%, Navigator down 1.78%, and Altri slipping 0.49%.
Within the EDP group, the parent company’s shares fell 0.52% to €3.266, while its renewable energy unit gained 0.39% to €10.17.
On Thursday, investment bank Morgan Stanley lowered its target price for the EDP family of companies, but maintained its “buy” suggestion for both listed entities. “Morgan Stanley cut the EDP family’s target, but continues to recommend the purchase of both listed,” the firm stated.
Mota-Engil emerged as a bright spot, surging 5.38% to €2,627.This partially reversed the construction company’s steep losses of over 11% from the previous session, a period during which it has been targeted by “short sellers.”
Ibersol was the only other company to close in positive territory, gaining 0.27% to €7.50.
Global markets experienced a rollercoaster ride on Tuesday, with major indices fluctuating amidst a wave of economic data releases and ongoing concerns about inflation. The dow Jones Industrial Average dipped slightly, while the S&P 500 and Nasdaq Composite managed to eke out modest gains.
“The market is grappling with a lot of uncertainty right now,” said one market analyst. “Investors are trying to gauge the impact of rising interest rates on corporate earnings and the overall economy.”
Adding to the volatility, oil prices surged past $80 a barrel, driven by concerns about tightening global supplies.This surge in energy costs is likely to fuel inflationary pressures, further complicating the outlook for central banks.
Simultaneously occurring, European markets also saw mixed results, with the DAX, AEX, and CAC indices all closing relatively flat. Investors in the region are closely watching developments in the ongoing energy crisis, as well as the potential impact of the war in Ukraine on the European economy.
“The situation in Europe remains quite fragile,” noted another analyst. “The energy crisis is a major headwind, and the war in Ukraine continues to cast a shadow over the region’s economic prospects.”
Looking ahead, market participants will be closely monitoring upcoming inflation data releases and central bank policy decisions for clues about the future direction of the global economy.
The coming weeks are likely to be characterized by continued volatility as investors navigate a complex and uncertain economic landscape.
## Lisbon’s Stock Exchange Dips as BCP Weighs on PSI Index: An expert Analysis
**World-Today-News.com**: Today we saw Lisbon’s stock exchange close lower, marking a mixed day for European markets. The negative trend in Lisbon was largely attributed to a significant drop in shares of Banco Comercial Português (BCP). To help us understand the situation better, we are joined by Pedro Silva, a renowned financial analyst with over 20 years of experience in the Portuguese market. Pedro, welcome to the program.
**Pedro Silva**: Thank you for having me.
**WTN**: Pedro, can you shed some light on the factors that led to the decline in Lisbon’s stock market today, especially the sharp drop in BCP shares?
**PS**: The decline in Lisbon’s stock market today was indeed driven by a confluence of factors. while European markets were generally mixed, the weakness in the Psi-20 index was noticeably stronger. BCP’s performance had a significant impact, with its shares falling almost 3%. This decline likely mirrored the broader weakness seen in the European banking sector today, following a strong surge the previous day.
Investors might potentially be taking profits after yesterday’s rally or reacting to ongoing concerns within the sector.
**WTN**: Besides BCP, what other sectors contributed to the PSI’s downward trend?
**PS**: We also
observed declines in other sectors. Retail stocks took a hit, with Jeronimo Martins and Sonae both finishing lower. Paper companies like Semapa, Navigator, and Altri also experienced losses.
**WTN**: What are your projections for the Portuguese stock market in the coming days?
**PS**: Predicting market movements is always challenging. however, the Portuguese economy is showing signs of resilience, with recent positive data on unemployment and consumer confidence. This could provide support for the market in the long run. However, the banking sector globally remains a sensitive area, and any
further weakness in that sector could impact the PSI index. Investors will be closely watching developments in the global economy and the financial sector in the coming days.
**WTN**: Thank you, Pedro, for your insightful analysis of today’s market performance.
