Lisbon Benchmark Edges Up as Telecoms, Materials and Consumer Goods Lift Market

Portugal's PSI index closed modestly higher on Wednesday, advancing 0.11% to reach a new five-year high. Strength in the Telecoms, Basic Materials and Consumer Goods sectors helped push the market up. Energy and industrial names featured among the session's top performers, while a handful of construction and renewable-energy stocks lagged. Commodity and currency moves were mixed, with Brent and crude futures higher and the euro weakening against the dollar.

Key Points

PSI rose 0.11% at the close in Lisbon, reaching a new five-year high.
Top performers were Galp Energia Nom (ELI:GALP), Semapa (ELI:SEM), and Nos SGPS SA (ELI:NOS), while Teixeira Duarte (ELI:TDSA), Mota Engil SGPS SA (ELI:MOTA), and EDP Renovaveis (ELI:EDPR) were among the weakest.
Commodities and currencies moved alongside the equity session: Brent and U.S. crude futures climbed, gold futures jumped, EUR/USD weakened, and the U.S. Dollar Index Futures gained.

Portuguese equities closed on a positive note Wednesday, with the PSI index rising 0.11% to register a new five-year high at the close of trading in Lisbon. Broad gains were led by stocks in the Telecoms, Basic Materials and Consumer Goods sectors, which collectively supported the modest advance.

On an individual-stock basis, the session's biggest gainer was Galp Energia Nom (ELI:GALP), which climbed 3.02%, gaining 0.48 points to finish at 16.39. Semapa (ELI:SEM) added 1.83%, or 0.40 points, to close at 22.25, while Nos SGPS SA (ELI:NOS) rose 1.27%, up 0.06 points to end the session at 4.39.

At the other end of the PSI, Teixeira Duarte (ELI:TDSA) posted the largest decline, slipping 1.61% or 0.01 points to 0.49 at the close. Mota Engil SGPS SA (ELI:MOTA) fell 1.40%, a drop of 0.06 points to 4.38, and EDP Renovaveis (ELI:EDPR) eased 1.31% or 0.17 points to finish at 12.78.

Declining issues outnumbered advancing ones on the Lisbon Stock Exchange by 14 to 12, with 4 stocks unchanged at the close. Notably, Semapa (ELI:SEM) pushed to an all-time high, rising 1.83% or 0.40 to 22.25.

Commodities markets showed gains for energy and precious metals. Brent crude for April delivery was up 0.47% or 0.31 to $66.90 a barrel. U.S. crude for March delivery rose 0.58% or 0.36 to $62.75 a barrel. The April gold futures contract recorded a larger percentage move, increasing 4.10% or 210.04 to trade at $5,330.64 a troy ounce.

Currency markets also moved during the session. The euro weakened against the dollar, with EUR/USD down 0.88% to 1.19. EUR/GBP was unchanged at 0.87, showing a 0.40% figure in the report. The U.S. Dollar Index Futures were up 0.31% and stood at 96.35 at the time of the close.

Market context - The Portuguese market's small advance was concentrated in a few sectors and a handful of stocks, with energy and materials among the notable contributors and construction and renewable-energy names appearing among the laggards. Volume and breadth data indicated a near balance between winners and losers, with slightly more declines than advances.

Risks

Market breadth was narrow - declining stocks slightly outnumbered advancing ones (14 to 12), which could signal limited participation in the rally, affecting market stability in the short term. This impacts equity market sectors broadly.
Notable weakness in construction and renewable-energy names, such as Teixeira Duarte (ELI:TDSA), Mota Engil (ELI:MOTA) and EDP Renovaveis (ELI:EDPR), introduces sector-specific downside risk for investors focused on those industries.
Currency and commodity moves - a weaker euro and volatile commodity prices, including a sizeable rise in gold futures, add uncertainty to earnings and valuation dynamics for exporters and commodity-sensitive sectors.

Menu

Key Points

Risks

More from Stock Markets