Lisbon shares off highs midday as blue chips BCP, PT lose gains

Lisbon shares off highs midday as blue chips BCP, PT lose gains

	Published : Mon, 15 Jan 2007 13:22 By : Agencies Print this Story

LISBON (AFX) - Share prices were off highs in light midday trade as Portugal Telecom fell after a downgrade, taking its PT Multimedia unit with it, while BCP shifted into the red and Brisa was also weak, dealers said.

At 11.49 am, the PSI 20 index was up 3.77 points or 0.03 pct at 11,520.44.

Equities opened higher, extending Friday's gains, but came off highs over the morning as selected market heavyweights came under pressure.

PT was down 0.03 at 10.17, after DKW downgraded the stock to 'hold' from 'add', while its cable and media division PTM shed 0.06 to 10.29 after sharp gains last week.

Sonaecom gained 0.10 eur or 1.68 pct to 6.05, and parent Sonae, up 0.02 at 1.69 after its 13.9 bln eur attempt to acquire the PT group was finally registered by bourse watchdog CMVM on Friday.

In the absence of any sign of a competing offer it looks as if the group will avoid a costly bidding war, brokers said, adding that the market view is that SonaeCom may nevertheless have to raise the bid.

Zeinal Bava, PT's deputy chairman, said PT might even make a counter offer for its rival if Sonaecom's bid fails.

Among other Sonae units Sonae Industria gained 0.15 to 8.11, boosted by sector gains on news of sector consolidation after peer Pfleiderer announced plans to buy Sweden's Pergo.

'Less players in the sector will be positive for companies pricing models,' a Madrid based trader said, adding that 'On a less cynical note, Sonae Industria has a lot of catching up to do with Pfleiderer's share price,' he added.

Among energy companies EDP was up 0.02 or 0.25 at 3.98, boosted by reports that Algeria's Sonatrach is in talks to acquire 5 pct of the company.

Galp was up 0.05 at 6.49, tracking other European oil stocks.

Jeronimo Martins surged 0.41 or 2.28 pct at 18.41, as analysts predicted the retailer's full year sales figures tomorrow morning will show strong growth.

Paper interests were strong, with Altri up 0.08 at 4.53 and Portucel 0.04 higher at 2.50 after peer Semapa, up 0.05 at 9.03, broke a key 9 eur resistence last week.

Banks were firm with Banco Espirito Santo up 0.08 at 14.16 and Banco BPI gaining 0.01 at 6.02, while Banco Comercial Portugues shed 0.01 to 2.82.

Among other underperformers, Brisa was down 0.10 at 9.51.

jonathan.gleave@afxnews.com

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