15% fall in Mota's shares and 5% in Galp bring down Lisbon Stock Exchange

The oil-exporting countries and their main allies (OPEC +) were unable to reach an agreement to postpone the increase in oil production planned for January. The fall of black gold in international markets ended up dragging stocks into negative territory. Europe closed in fall and Portugal was no exception.

The PSI-20 index closed down 1,01% to 4.604,72 points, pressured by Mota-Engil, which lost -15,15% in the session to 1,456 euros after last Friday rising close to 15% in the following the purchase of 23% of the share capital of the Portuguese construction company for 169 million euros by the Chinese construction giant Acom.

Upon closing the market, the construction company sent a statement announcing that its subsidiary Mota-Engil Central Europe (MECE) signed a new contract in Poland in the amount of 72 million euros for the execution of the project and construction of the expressway S19 at the Białystok Południe - Ploski node, in a project to which some of the largest European companies presented themselves, in a total of nine companies of different nationalities that were competing.

The second share that fell the most was Galp, which lost -5,38% to 9,04 euros, following the fall of black gold due to the fact that the OPEC + countries did not have an agreement to postpone the increase in production.

Also noteworthy is EDP, which decreased -2,87% to 4,47 euros. Today, the Ministry of Finance issued a statement announcing that the drop in VAT on electricity will take effect tomorrow, December 1. Starting tomorrow, December 1, consumers will pay less for electricity consumption. This decrease will benefit around 5,2 million contracts, which corresponds to around 86% of low voltage customers. CTT also had a drop in the stock exchange of -2,01% to 2,44 euros.

Ibersol decreased -1,95% to 5,02 euros and Corticeira Amorim decreased -1,54% to 10,20 euros.

In the green they closed six titles. EDP ​​Renováveis ​​rose + 1,72% to 17,76 euros; BCP increased + 1,11% to 0,1185 euros and Jerónimo Martins advanced + 1,34% to 14,36 euros.

The main European markets closed with losses, with the global EuroStoxx 50 falling 1% to 3.492,5 points. London's FTSE 100 closed down 1,09% to 6.28,3 points; the French CAC fell 1,42% to 5.518,5 points; the DAX lost 0,33% to 13.291,2 points; the FTSE MIB fell 1,3% to 22.061 points and the IBEX fell 1,39% to 8.076 points.

The stock market was pressured by the fall in the price of oil futures, in correction while awaiting an OPEC + deal. The oil-exporting countries and their main allies (OPEC +) have not been able to reach an agreement to postpone the increase in oil production planned for next January. London Brent fell 1,31% to $ 47,55.

Optimism regarding the development of effective vaccines against Covid-19 and their arrival on the market in the first half of 2021 reinforced expectations for a strong economic recovery in 2021 and justify the valuations of the stock exchanges throughout November.

The euro fell 0,13% to $ 1,1947.

With regard to sovereign debt, the secondary market is witnessing an increase in the yields of German 10-year debt, of Portuguese, Spanish and Italian.

German debt rises 1,71 basis points to -0,57%; Portuguese debt advances 2 basis points to 0,03%; Spain also has interest rates going up, 2,34 basis points to 0,08% and Italy registers a rise of 3,21 basis points to 0,62%.

Interest on public debt of the countries that make up the Eurozone continues to benefit from the broad asset purchase program implemented by the European Central Bank in response to the pandemic crisis, particularly in the case of the peripheral economies of the single currency.


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