Lisbon PSI index tops 10,000 for first time since April 2001

[Paciente]

15 Mar 2006 14:55 GMT


Lisbon PSI index tops 10,000 for first time since April 2001


LISBON - Shares rose sharply and the PSI-20 blue chip index jumped 200 points or 2 pct to surge above 10,000 points for the first time since April 2001 amid talk of further merger and acquisition proposals, dealers said.

At 2.18 pm, the PSI-20 index was up 207.50 points or 2.09 pct at 10,143.90, sticking close to the near-five year high of 10,158.28 set a little while earlier.

The PSI is up 17.5 pct so far this year, outpacing the growth in the other Euronext markets of Paris, Amsterdam and Brussels.

Biggest gainer today was Banco Comercial Portugues, which soared 10 pct amid talk it could become a bid target itself following the bank's launch on Monday afternoon of a 4.33 bln eur offer for smaller domestic rival Banco BPI, dealers said.

BPI shares surged 25 pct late Monday following disclosure of the offer.

Portugal Telecom shares have this week risen above 10 eur, taking their 2006 gain to 17.5 pct, in the wake of the announcement of an audacious 10.7 bln eur bid by Portuguese alternative telecoms operator SonaeCom.

In midafternoon, BCP shares were up 0.22 eur or 8.66 pct at 2.76 eur, BPI down 0.08 eur or 1.37 pct at 5.78 eur, Portugal Telecom up 0.05 at 10.08 eur, SonaeCom up 0.07 eur or 1.81 pct at 3.94 eur and parent company Sonae SGPS up 0.01 at 1.34 eur.

Analysts said BCP's offer for BPI could be aimed at strengthening itself against predators.

JP Morgan analysts said: "We see a defensive angle in this move, with BCP trying to gain muscle at a stage when there might be risks of the bank becoming a more attractive acquisition target."

Deutsche Bank refused to comment on rumours that it might make an offer for BCP.

BPI shares were hit by a report in Diario Economico that BPI itself is considering the idea of turning the tables and launching a bid for BCP.

BCP, PT and Energias de Portugal are the three major components of the PSI index, each with a weighting of around 20 pct, accounting between them for 60 pct of its value.

EDP rose 0.05 to reach the 3.00 eur level as some analysts predicted EDP could become a takeover target too. Spain's Expansion reported that Italy's Enel has 50 bln eur to spend on acquisitions in France and Spain.

Another big riser was SAG, up 0.10 eur or 5.71 pct to 1.85 eur following the car distributor's announcement that full year net profit accelerated 34 pct to 33.5 mln eur.

Joao Pereira Coutinho, SAG's chairman, admitted that he is looking at participating in a counterbid for PT on a personal basis but denied that SAG or any related company is involved.

Cofina gained 0.12 eur or 3.48 pct to 3.57 eur amid a revival of speculation of a possible bid for the publisher. It surged 30 pct following a report last month that Spanish media company Vocento has notified Cofina of its interest in taking it over.

Cimpor, another company which has been the subject of takeover expectations in the past, climbed 0.14 eur or 2.66 pct to 5.41 eur.

[Francisco Monjardino]

Pois é Paciente,

O nosso PSI 20 anda em grande forma e estas OPAS todas só veio animar ainda mais a festa.

Aqui fica o gráfico,