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Lisbon is now the European stock exchange that fell the most in the middle of the session
JB Capital Markets' downward revision of the EDP group's share price is putting pressure on the Portuguese index. The Lisbon Stock Exchange is falling in the face of a loss of more than 3% by the EDP family.
The Lisbon Stock Exchange is down 1.19% in the middle of the session to 6,549.87 points, with the European market losing the most ground in trading. All Portuguese shares are down, with the exception of Ibersol. Those losing the most ground belong to the EDP group, which is being penalized by JB Capital Markets' downward revision.
The biggest drop was in EDP Renováveis, which fell 3.08% to 13.22 euros, followed by EDP's fall of 2.15% to 3.78 euros. These two shares continue the trend recorded when the Portuguese stock market opened.
These drops in EDP and EDP Renováveis are justified by the fact that JB Capital Markets "revised downwards” the target prices for EDP Renováveis' shares, from the previous 18.30 euros to 18 euros and EDP from the previous 5.10 euros to 5.05 euros. However, the entity has maintained its buy recommendation, as the trader from Banco Carregosa's Market Room, Pedro Oliveira, had already told Jornal Económico at the opening of the Portuguese stock market.
"The reasons for this revision of the target price are related to the weak performance of the shares, the reduction in profits and the decrease in growth estimates due to challenges in the renewables sector, thus reflecting a more conservative expectation for future results,” added Pedro Oliveira.
XTB analyst Henrique Tomé told Jornal Económico at the opening of the Portuguese stock exchange that in the case of EDP Renováveis, this "weak performance” has been felt for several sessions, and in the last 30 days, the company's shares "have already fallen by more than 10%”.
Henrique Tomé points out that "although there doesn't seem to be any apparent reason to justify these particular falls, we can interpret them as a continuation of the trend that has been going on since mid-September. In addition, the fact that the performance of energy commodities is also weak may also be supporting these falls.”
CTT followed with a 1.41% loss to 4.18 euros.
Also in the red were Greenvolt, Sonae, Altri, Jerónimo Martins, REN, Mota Engil, NOS, Corticeira Amorim, BCP, Navigator, Galp Energia and Semapa.
In the middle of the session, the only listed company to escape the red is Ibersol, which is up 0.85% to 7.12 euros.
The main European stock exchanges are also falling. The DAX (Germany), which was in the green at the opening of trading, is now in the red in the middle of the session, down 0.42%. The CAC 40 (France) is down 0.83% and the FTSE 100 (UK) is down 0.75%, while the AEX (Netherlands) is down 0.54%, the IBEX 35 (Spain) is down 1.23%, and the FTSE MIB (Italy) is down 1.24%.
Millennium's research highlights the "bearish” performance of the European stock markets, stressing that the utilities sector is being "the most conditioned, which justifies the worse performance” of the Iberian indices.
"EDP Renováveis was even the company that fell the most in the sector, losing more than 3%. The reason for this could be the rise in sovereign debt yields, adjusted for the prospect of lower interest rate cuts in the United States than previously expected, which penalizes listed companies with a greater weight of debt in their accounts. On the positive side, we should highlight the technology sector, buoyed by SAP's good accounts, as well as ASML, following a Bloomberg interview with the group's CEO, after the Dutch giant fell almost 15% last week with its reported order figures. In Portugal, Jerónimo Martins even received a buy recommendation, but continued to fall,” says Millennium.
Oil, which was trading down at the opening of the Portuguese stock exchange, reversed course in the middle of the session and is now rising. Brent crude is up 0.92% to 74.97 dollars and crude oil is up 0.97% to 70.72 dollars.
The euro is up 0.09% against the dollar to 1.08261 dollars and the euro is up 0.13% against the pound to 0.83399 pounds.