In the trading sessions of Wednesday and Thursday, the PSI benchmark index reached its highest point since June 2014. This performance emerged “amid a strong appreciation in major European stock exchanges, including the German DAX, which today reached a new all-time high,” noted Vítor Madeira, an analyst from Xtb, in an interview.
“This scenario reflects the return of optimism in the markets regarding the prospects for the European economy,” the analyst observed, adding that “positive movements have intensified since Ursula von der Leyen’s announcement of the stimulus package aimed at supporting the military sector.”
In the markets, the euro saw significant appreciation, and European indexes followed the trend, indicating a “clear sign of confidence from investors.”
In this context, the PSI “has benefited from positive dynamics, driven by both the slowdown in inflation and favorable expectations regarding the future performance of the companies it comprises—in terms of revenues, profits, and dividends—thus aligning with its European peers.”
João Queiroz, Head of Trading at Banco Carregosa, also highlighted that “this performance results from the confluence of structural and circumstantial factors, reflecting a solid evolution of the Portuguese market.”
“Several key stocks—like EDP, BCP, or REN—have been re-evaluated by investors, founded on robust quarterly results, disciplined financial management, and improved outlooks in their respective sectors, particularly in energy, infrastructure, and banking,” noted Queiroz.
Other companies, such as Galp and Navigator, “contributed to this positive dynamic by either strengthening their guidance or demonstrating the ability to generate consistent cash flows, even in more challenging contexts or amidst mixed market reactions,” he added.
Additionally, the PSI has benefited from attractive market ratios, according to the analyst, possessing a profile that “has been particularly appealing to institutional investors seeking stable returns in a global environment still marked by uncertainties.”
Thus, “the strong performance of the PSI results from an effective combination of operational robustness of companies, attractive relative positioning, and a more favorable reading of the macro context, which has motivated greater interest and participation from investors,” summarized João Queiroz.
Vítor Madeira, however, cautioned that “evaluating the PSI in isolation can be unfair, as this index includes several high-dividend companies,” whose payout directly impacts stock prices.
“Nevertheless, if this optimistic climate persists, the PSI could show progressive improvement,” signaled the analyst from Xtb.
After four consecutive sessions of gains, the Lisbon stock exchange ultimately closed today with a decline, despite having more stocks in positive than negative territory, precisely hindered by an 11.9% drop in CTT, which posted results this Thursday.
