Sonae near 5-month low on Portugal econ concerns
07/06/2005 16:35
LISBON, June 7 (Reuters) - Shares in Portuguese conglomerate Sonae SGPS dropped to nearly a five-month low on Tuesday amid worries about higher taxes cutting into consumption.
Sonae, controlled by billionaire Belmiro de Azevedo, was off 3.45 percent at 1.12 euros at about 4:15 p.m. (1515 GMT). It hit 1.11 euros, its lowest level since late January, before firming.
The drop came as the benchmark PSI20 index was off 0.27 percent. Volume was heavy at about 20 million shares and Sonae was the Euronext Lisbon bourse's most active issue.
Traders said the drop came amid worries about the conglomerate's exposure to consumption. Sonae unit Modelo Continente is Portugal's biggest retailer and the new Socialist government has hiked taxes, including the value-added tax, to help trim the biggest budget deficit in the European Union.
"The Portuguese market in general is going through a bad patch and Sonae is very exposed to consumption," a trader said.
Another dealer said, "The announcement of the rise in value-added tax should hurt private consumption, which is generating a lot of pessimism."
Filipe Garcia, a technical analyst with Informacao de Mercados Financeiros, put support for Sonae at between 1.09 and 1.13 euros. ((Writing by Ian Simpson, editing by Tom Hals; Lisbon newsroom, 351-21-350-9201,
lisbon.newsroom@reuters.com
Reuters messaging:
ian.simpson.reuters.com@reuters.net;))
Enviado: 8/6/2005 10:46
E de que maneira!!!