Monday, August 11, 2014

PSI-20 crashes near 1% pushed by PT and expulsion from BES – Business Journal – Portugal

PSI-20 crashes near 1% pushed by PT and expulsion from BES – Business Journal – Portugal

The National Stock Exchange closed the session in fall despite 12 of the 18 listed have closed the deal on high. The continued loss of value of the PT and the expulsion of the main BES national index determined the descent.

The PSI-20 closed down 0.90% to 5,360, 89 points, with 12 listed in trading high and six falling. At this time the PSI-20 is composed of only 18 listed after the exclusion of BES, which added to the holding Espírito Santo Financial Group.

This way the Lisbon square bucked the trend and was the only exception among valuations recorded by major European counterparts. The situation in Ukraine is less tension help raise confidence among investors. The Stoxx 600 closed advancing 1.49% to 329.74 points.

Although the majority of listed have closed higher, the Lisbon square was penalized by expulsion from the BES that is no longer part of the main national index.

But if the Espírito Santo Financial Group (ESFG) was expelled from the PSI-20 keeping the price at which it was suspended, BES was deleted with a value of zero euros, implying a loss Direct from EUR 675 million to the PSI-20. This was the value of market capitalization of the bank before the suspension decreed on August 1.

Among the listed that remain in Lisbon square again became PT that most penalized PSI-20 having closed sliding 2.65% to 1.435 euros. Since the beginning of the year market value of PT is down 54.59%, a fact that also contributed to the criminalization of Portuguese operator in the merger process with Brazilian Hi.

PT’s shareholders will hold a lower share of the new company resulting from the merger with Hi, what was initially established. This set of events has even led to the announcement of resignation with effect from September, Henry Grenadier PT.

The banking sector recovered from losses last week following the notice of redemption of the BES. The solution entailed losses for shareholders what created the fear of new cases.

Dita also that it is the financial sector to assume a possible difference between the sales value of the New Bank and the 4900 million euros provided by the Resolution Fund to recapitalize the good bank.

The BCP added 3.70% to 0.0868 euros, BPI advanced 1.73% to 1.233 euros and Banif rose 4 , 35% to 0.0072 euros.

In the energy sector the trend was mixed with EDP to grow 2.56% to 3.169 euros, EDPR to rise 1.61% to 4.91 euros and REN advancing 0.96% to 2.52 euros. Galp Energia already closed with losses of 0.16% to 12.38 euros.

In the construction sector the day also proved positive with Mota-Engil to add 2.80% to 3.999 euros and Teixeira Duarte climbing 3.23% to 0.671 euros.

In retail sentiment was also mixed. The Jerónimo Martins fell 0.55% to 10.005 euros on the day that the analysis CaixaBI downgraded the company’s valuation of 16.30 euros to 13.60 euros, due to the competitive environment and deflation in the food segment, both in Portugal and Poland.

(News updated at 17h05m more information)

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