Portugal mkt declines more on profit taking than credit crunch fears - analyst |
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Fri, 10 Aug 2007 11:05
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LISBON (Thomson Financial) - The declines on the Portuguese stock market this morning are more down to heavy profit taking rather than fears that banks or companies could be in trouble from a lending squeeze, analysts and dealers said.'The companies I follow are just coming in for heavy profit taking as credit crunch fears push global markets down, it's not like the companies who are potentially most vulnerable to a lending squeeze and are the largest fallers,' an analyst at a leading Portuguese bank said.'The hardest hit are the big outperformers,' he added.'We are seeing considerable outperformance from defensives like motorway concessionaries, despite them usually being more exposed than most to a high interest rate scenario,' a dealer at a leading Portuguese bank said.Turning to the banking sector in general, analysts and dealers said that the sector is fairly well protected against a possible lending squeeze.Banco Comercial Portugues, Banco BPI and Banco Espirito Santo all declined to comment for the moment on whether they has used any of the ECB's 95 bln eur liquidity injection yesterday.All banks have stated that they have no exposure to the US subprime mortgage lending market.'It looks like a knock on effect to me; one of the safest plays in the banking sector, BES, is declining the most, that's because of its recent outperformance more than any fears of a credit crunch,' the leading Portuguese bank analyst said.jonathan.gleave@thomson.comjg/rfwCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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