Greenvolt: End of takeover bid and negative sentiment towards energy companies among reasons for stock market fall

Greenvolt saw its shares fall by more than 5% at the opening of the Lisbon Stock Exchange. The head of trading at Banco Carregosa, João Queiroz, told Jornal Económico that the fall could be due to various factors such as the end of the takeover bid, which closed on Thursday, negative sentiment about the sector, and also the financial results.

Greenvolt saw its shares fall by more than 5% at the opening of the Lisbon Stock Exchange and despite a softening, the losses persist. João Queiroz, head of trading at Banco Carregosa, told Jornal Económico that there are several factors to explain this sharp drop.

 João Queiroz points out that these factors include financial results or prospects, negative sentiment about the sector or the end of the takeover bid for the company, which took place this Thursday. Banco Carregosa's head of trading says that financial results or prospects will be at stake.

"The company may release results below market expectations or a downward revision of its profit forecasts, with investors adjusting the share price to reflect the new expectations. The graph of its share price shows an abrupt drop which may be related to less optimistic prospects,” says João Queiroz.

Another factor that may be influencing the fall in the company's shares is the negative sentiment in the energy sector, adds João Queiroz. "Greenvolt's performance may be correlated with the renewable energy sector, which faces specific challenges such as volatility in energy prices, regulatory changes, or project delays,” he explains.

João Queiroz points out that other international companies in the same sector as Greenvolt, such as Alerion and Audax Renovables, were down 5.58% and 2.73% respectively during the morning.

"It can be seen that other renewable energy companies have also suffered recent falls, which may indicate a negative sentiment in the sector in which the still high long-term interest rates, especially in the United States, tend to penalize their financial results,” reinforces the head of trading at Banco Carregosa.

João Queiroz also said that the end of the takeover bid for Greenvolt could be another factor explaining the fall of more than 5% that the company was suffering at the start of the session. It should be noted that the takeover bid for Greenvolt was launched on October 7th by GVK Omega of the KKR fund and ended on October 24th, i.e. last Thursday.