Markets, Business & Tech Briefing: PSI Slips 0.5%, Jeronimo Martins Leads, Galp-Moeve Deal Nears Signing

Portuguese Equities: PSI Slips as Utilities and Banks Weigh

Lisbon gave back Monday's modest gain and then some, as a broad retreat led by utilities dragged the benchmark lower. The PSI index (Portuguese Stock Index) closed Tuesday, 21 July down 0.52% at 9,023.54 points, shedding roughly 47 points from Monday's 9,070.71 finish and slipping back below the 9,050 mark it had defended for most of last week. The move tracked a softer tone across Europe rather than any single domestic catalyst, with thin summer trading again amplifying otherwise unremarkable declines. Breadth was firmly negative: across the Lisbon board, falling stocks outnumbered risers by 17 to eight, with five names unchanged. Even after the pullback, the index remains only marginally below where it started the month and sits comfortably higher than a year ago, leaving Lisbon's wobble well within the range of ordinary mid-summer drift.

Blue-Chip Movers

The day's damage was concentrated in the power complex. EDP Renováveis, the renewables arm of the EDP — Energias de Portugal (Energies of Portugal) group, was the heaviest faller, sliding 1.49% to €13.84, while parent EDP dropped 1.31% to €4.52 and grid operator REN — Redes Energéticas Nacionais (National Energy Networks) eased 1.10% to €3.60, a clean sweep of losses for the regulated-utility names that anchor the index. On the other side of the ledger, retailer Jerónimo Martins once again led the market higher, adding 1.66% to €16.49 as investors positioned ahead of next week's results season. Cork-products group Corticeira Amorim rose 1.41% to €6.48 and postal operator CTT — Correios de Portugal (Post Office of Portugal) gained 1.40% to €5.79. Energy major Galp Energia was little changed, trading in the middle of the pack as the market awaited fresh detail on its Spanish downstream tie-up — the subject of today's focus below. Banco Comercial Português (BCP), the country's largest listed bank, drifted with the softer financials.

Government Bonds and the Euro

Portuguese sovereign debt stayed under mild pressure. The yield on the 10-year Obrigações do Tesouro (Treasury bonds) held around 3.6%, close to its highest in more than two years, as traders continued to trim expectations for further near-term rate cuts from the European Central Bank (ECB). The spread over 10-year German Bunds — the market's gauge of Lisbon's credit standing — stayed near 35 basis points, still historically tight and a reminder of how far Portugal's borrowing premium has narrowed since the debt-crisis years. The euro, meanwhile, was becalmed: EUR/USD traded at $1.1413, virtually flat on the day and holding inside the narrow band that has framed the pair through most of July, according to European Central Bank reference rates. With no first-tier euro-area or US data to force a break, the currency applied little fresh pressure on Portugal's exporters or its import bill.

Business & Tech Focus: Galp–Moeve Merger Nears an End-July Signing

The corporate story dominating Lisbon's trading desks remains Galp Energia's plan to combine its downstream business with Spain's Moeve, the former Cepsa. Galp's management is now targeting a signed agreement before the end of July, with the group's co-chief executive signalling that talks are progressing on schedule — even as the full combination is expected to complete only in the second half of the year. The proposed structure would split the merged operations into two platforms: an industrial company spanning refining, chemicals and trading, in which Moeve's owners — Abu Dhabi's Mubadala Investment Company and private-equity house Carlyle — would hold sway and Galp a stake of at least 20%; and a co-controlled mobility business built around roughly 3,500 fuel-retail sites across Iberia, in which Galp would hold close to half. The remaining sticking point is political: negotiations with the Portuguese government have centred less on price than on security of fuel supply, and specifically on investment commitments for the strategically important Sines refinery, which Lisbon regards as a pillar of national energy sovereignty. Galp says it maintains "very strong flow and proximity" with the government on keeping those assets operational and resilient. A deal would reshape the Iberian downstream fuel market, and its progress — or any fresh delay — is likely to remain the single biggest swing factor for Galp shares into August.

Earnings Watch: First-Half Reporting Season Opens Next Week

With the calendar turning, attention is shifting to the domestic first-half earnings season, which clusters in the closing days of July. EDP has set 30 July for its half-year results, the first major checkpoint for a stock that — alongside Galp and BCP — formed the trio of PSI names posting billion-euro profits in 2025, and Tuesday's utility-led sell-off leaves the sector needing the numbers to justify sentiment. Retailer Jerónimo Martins, the index's steadiest performer of late and again its top riser today, will be watched for confirmation that Iberian and Polish grocery volumes are holding up, while analysts have been nudging estimates higher on EDP Renováveis, citing stronger expected returns from its US renewables pipeline. Whether the reports vindicate that optimism — after a session in which Lisbon gave ground — will set the tone for the market as August approaches.

The Week Ahead

Wednesday's session will test whether Tuesday's dip in the utilities was a one-day repositioning or the start of a deeper consolidation, with Galp's Moeve timetable, the countdown to EDP's 30 July results and the direction of euro-area bond yields the key variables to watch.