Lisbon shares surge mid-morning led by EDP, Sonae group; Portugal Telecom lower

Lisbon shares surge mid-morning led by EDP, Sonae group; Portugal Telecom lower

	Published : Mon, 19 Feb 2007 13:06 By : Agencies Print this Story

LISBON (AFX) - Shares were higher in mid-morning trade led by heavyweight EDP and companies in the Sonae group, while takeover target Portugal Telecom was down, dealers said.

At 11.25 am, the PSI 20 index was up 113.41 points or 0.94 pct at 12,246.28.

Equities opened lower, pressured by EDP and PT, but turned higher quickly and extended gains throughout the morning.

Biggest gainer EDP rose 0.12 eur or 2.84 pct to 4.34 on hopes that investors exposed to Portugal through Portugal Telecom will switch to the energy group if PT is acquired by Sonaecom.

'The market is continuing to bank on success for Sonaecom in its bid for Portugal Telecom, and consequentially, that current PT investors will look elsewhere in Portugal to invest their money,' a dealer at a local brokerage said.

Sonae rose 0.03 eur or 2.04 pct to 2.05 and its 60-pct owned Sonaecom unit was up 0.06 or 0.80 pct at 7.56, as investors continue to increase exposure to the group, expecting Sonaecom's improved 10.50 eur per share bid for PT to succeed.

Wood panel maker Sonae Industria was up 0.11 eur or 1.17 at 9.51 tracking gains in the Sonae group.

Media stock Impresa was up 0.04 or 0.77 pct at 5.22 on ongoing M&A speculation.

Companies with exposure to the cement sector were also on the rise, with Semapa up 0.11 or 0.97 pct at 11.41 and Cimpor 0.10 higher at 6.52.

Among the fallers, Portugal Telecom shed 0.01 at 10.23, after bourse regulator CMVM clarified over the weekend that Sonaecom can not raise its current 10.50 eur offer for the telecom group unless there is a counterbid.

Additionally, this morning Bear Stearns downgraded the stock to 'peer perform' from 'outperform', noting that risks that Sonaecom's 10.50 eur per share bid for the group will not go ahead are main.'

Galp was down 0.03 at 6.66 on weaker oil prices after forecasts for warmer US weather.

Outside the PSI 20, Teixeira Duarte was up 0.07 or 2.69 pct at 2.67, recovering from recent losses after Joe Berardo placed 10 pct of the builder with institutions.

luis.morais@thomson.com

lm/jg/gp

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.

AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited