(Updates with full report)
LISBON (Thomson Financial) - Shares closed lower in light trade, tracking major European markets as blue chip bank BCP and the Sonae group companies weighed on the index, while EDP and retailer Jeronimo Martins outperformed.
The PSI 20 index closed down 124.12 points at 12,623.92 after trading in a range of 12,585-12,703 on a volume of around 211 mln eur.
Equities opened lower after a weak Wall St close Friday, but pared losses slightly in early deals, only to trade in a tight range in negative territory throughout the morning.
In the afternoon stocks recovered to session highs, though still remaining in the red, but a sell-off in the last hour pushed the index lower to the close.
BCP was down 0.08 eur or 2.47 pct at 3.16, weighing on the index. Late Friday, the Bank of Portugal and the CMVM said they are leading simultaneous investigations on alleged loan irregularities at BCP.
Among other banks, Banco BPI, long said to be a possible candidate for a tie-up with BCP, slipped 0.03 to 6.38, while BES fell 0.18 to 16.29.
Companies in the Sonae group were weak, with parent Sonae losing 0.04 or 2.02 pct to 1.94, while its telecoms and media unit Sonaecom closed down 0.10 or 2.76 pct at 3.52.
Wood panel maker Sonae Industria declined 0.13 to 8.60.
Retailer Jeronimo Martins was up 0.02 at 4.94, supporting the index and adding to recent gains ahead of third-quarter results on Thursday which analysts say will be solid.
Energy company EDP edged up 0.01 to 4.28, also outperforming after analysts deemed 'slightly positive' the decision by ratings agency Moody's to reiterate its A2 long-term ratings on the company following the acquisition of US-based Horizon Wind Power. Previously, Fitch and Standard & Poor's had downgraded EDP's ratings following the acquisition.
Galp shed 0.08 to 11.38 after its investor day today provided little in the way of fresh leads.
PT slipped 0.04 to 10.31, but still outperformed after UBS hiked its price target to 10.80 eur per share from 10.70, with its stance kept at 'neutral', to reflect the upcoming spin-off of PT Multimedia and prospects for Brazilian wireless operator Vivo, which PT and Telefonica control through a joint venture.
Brazilian telecoms regulator Anatel announced today that Vivo had a 27.78 pct market share in September, down from 29.96 pct last year.
PT Multimedia was down 0.13 at 10.20. UBS cut its target price for PTM to 10.20 eur per share from 10.80 eur and kept its 'sell' stance, citing the forthcoming spin-off from parent PT. The broker said the float of shares may cause further pressure.
Builders were also weak, with Soares da Costa slumping 0.09 or 3.60 pct to 2.41 in profit taking after the builder saw sharp gains Friday ahead of its strategy presentation today.
The company said in the presentation that it is targeting at least 13 pct growth in EBITDA, on estimated sales of 1 bln eur in 2012. It will also start paying dividends from 2009.
In the same sector, larger peer Mota Engil shed 0.17 or 2.81 pct to 5.87. Morning press reports said that a Spanish and a Brazilian constructor are both beating bids from Mota Engil and other Portuguese builders for a Lisbon ring road tender worth about 100 mln eur. chico.laxmidas@thomson.com scl/jlc COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.