It was a long awaited day, but things didn’t go as expected. Greenvolt shares fell nearly 5% on the first day of trading on the PSI-20. It was the biggest drop in a day since the company, led by João Manso Neto, began trading on the stock exchange and withdrew € 37.6 million from a market cap of € 719.7 million at the close.
The PSI-20 quarterly review took effect this Monday, when Greenvolt became the main stock index. A renewable energy company specializing in biomass went public on July 15 (each share was worth € 4.65 after being sold in an initial public offering for € 4.25).
The coverage of the study, which pointed to upside potential, and the very announcement of PSI-20 (as managers always wanted) ultimately boosted the rankings. The stock even hit an all-time high of 6.78 euros (hit last Wednesday).
However, the results of its debut on PSI-20 were the opposite, with the share falling the most – 4.97% to 5.93 euros per share – on the red-painted stock exchange. The national benchmark index fell 1.62% to 5,213.55, with several large companies recording significant losses.
BCP fell 4.64% to € 0.1234, EDP Renováveis fell 1.93% to € 21.38, and the EDP fell 1.8% to € 4.49. Similarly, also Mota-Engil (-3.66%), Corticeira Amorim (-3.04%), CTT (-2.87%), Altri (-2.4%), Navigator (-1.86% ), Semapa (-1.82%) or Sonae (-1.68%) closed in the red.
Galp Energia was in positive territory during the trading session, but in recent negotiations it turned around and closed 0.05% lower to 8.26 euros. Thus, the only listed companies to close in the green were Nos (up 0.36% to € 3.38) and REN (up 0.2% to € 2.51).
A busy week scares European investors
Lisbon echoed the negative trend seen in the main European squares. The Stoxx 600 lost 1.6%, the Spanish IBEX 0.96% and the French CAC 40 1.74%. Germany’s DAX, which fell from 30 to 40 components this Monday (including Hellofresh, Airbus or Zalando), fell 2.16%.
“Markets in Europe fell significantly this Monday as risk-free trading prevails on the macroeconomic front ahead of another hectic week,” explains Pierre Veyre, technical analyst at ActivTrades, in a commentary released this Monday.
Investors are struggling to digest debt crises in the world’s two largest economies (China’s Evergrande and the US debt ceiling), coupled with uncertainty over the US Federal Reserve’s decision to lift stimulus.
“This situation is also underlined by the strengthening of the US dollar and the rise in yields on 10-year debt, which suggests renewed ‘fear’ in trading this week,” – says Weiret, noting that the central banks of the United States, Japan, England and other countries. China will meet this week.
(News updated at 17:00)
