Portugal’s main stock index closed significantly lower on Thursday, reflecting broader weakness across European markets as investor sentiment turned cautious. The PSI index dropped 2.06 percent to 8,946.83 points, with the majority of listed companies ending the session in negative territory. Market pressure was widespread, with only a small number of stocks managing to post gains, highlighting a clear shift toward risk aversion across regional equities as macroeconomic uncertainty continues to influence trading behavior.
CTT led the declines with a sharp drop of more than 11 percent, despite recently reporting improved annual results. The company had announced that its profit rose over 11 percent in 2025, reaching 50.7 million euros, yet the market reaction remained negative, suggesting that investors may have already priced in the positive performance or are reacting to broader concerns around future outlook and sector pressures. The decline in CTT set the tone for the session, contributing heavily to the overall downturn in the PSI index.
Other major companies also recorded notable losses, with Jerónimo Martins falling more than 7 percent and Sonae SGPS declining over 5 percent. Construction and infrastructure firms such as Teixeira Duarte and Mota Engil also saw significant drops, while banking group BCP and industrial company Semapa followed the downward trend. Additional declines were observed across a range of sectors including energy, retail and manufacturing, indicating that the sell off was not limited to a single industry but rather reflected broader market weakness.
Across Europe, similar patterns were observed as major indices posted steep losses during the same trading session. Frankfurt recorded a decline of nearly 3 percent, while London, Madrid and Paris all closed more than 2 percent lower. The synchronized downturn across multiple markets points to wider investor concerns, possibly linked to global economic conditions, interest rate expectations and ongoing geopolitical uncertainty that continues to weigh on investor confidence.
Despite the overall negative performance, a small number of companies managed to close higher, providing limited support to the index. Energy group Galp stood out with a gain of nearly 4 percent, while telecommunications company NOS also posted a modest increase. These gains, however, were not sufficient to offset the widespread losses seen across the majority of the market, reinforcing the bearish tone that defined the session.
The Portuguese market’s decline comes at a time when European equities are facing increasing pressure from external factors, including shifting monetary policy expectations and volatility in global markets. Investors remain focused on upcoming economic indicators and corporate earnings updates for further direction, while analysts continue to monitor whether the current pullback represents a short term correction or signals a deeper trend across regional markets.
