PSI 20 starts in the red for the third consecutive day, penalized by Galp and BCP

Portuguese stock exchange started the session this Wednesday to lose 0,64%, to 3.952,15 points, in line with the main European markets.

Stringer / Reuters

The main Portuguese stock index (PSI 20) started the session this Wednesday to lose 0,64%, to 3.952,15 points, in line with the main European markets. It is the third consecutive day that the PSI 20 opens on negative ground. Of the 18 listed companies in the PSI 20, only two listed companies do not trade on negative ground.

As at the opening of Tuesday's session, today the failures of Galp Energia and BCP again penalize the PSI 20 at the opening of the stock exchange.

The Portuguese oil company sinks 3,27% to 7,15 euros, with investors still managing expectations regarding the injury 23 million euros in the third quarter of the year. The amount contrasts sharply with the 101 million profits recorded in the same period of 2019. Even so, the loss amount recorded represents a recovery compared to the second quarter of the year, when the loss was 52 million euros. In addition to the results, the anúncio from the sale of the distribution unit, Galp Gás Natural Distribuição to Allianz Capital Partners, as well as Goldman Sachs' last recommendation for Galp's securities.

The Goldman Sachs kept the target price of the oil company's share at 12 euros in the space of 12 months, 54,8% more than the closing price of Monday's session (7,75 euros). The North American bank continues to recommend that investors sell Galp bonds.

Also in the energy sector, EDP (-0,95%), EDP Renováveis ​​(-0,76%) and REN (-0,22%) also penalize the national stock exchange.

BCP, in turn, started to fall 2,20%, to 0,07 euros. Also in the case of the bank led by Miguel Maya, investors react to operating results in the third quarter, in this case of the bank's branch in Poland. Polish Bank Millennium presented on Tuesday a 75% drop in earnings compared to the third quarter of 2019, which corresponds to a profit of 132 million zlotys (29,8 million euros) in the first nine months of this year.

The declines in Mota-Engil (-3,85%) and CTT (-3,42%) securities also contributed to placing the PSI 20 in negative territory.


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