Bloomberg News

Portuguese Banks Extend Gains on ECB Bond Buying: Lisbon Mover

September 07, 2012

Banco Espirito Santo SA (BES) and Banco BPI SA (BPI) led Portuguese banks higher for a second day, boosted by the European Central Bank’s bond-purchasing plan.

ECB President Mario Draghi said yesterday that bond purchases may be considered for euro-area countries currently under bailout programs, such as Portugal, Greece and Ireland, when they regain bond-market access.

Banco Espirito Santo, the country’s biggest publicly traded lender, rose 8 percent to 66.2 euro cents, the highest since April 11, while Banco BPI gained 12 percent to 75.4 cents, the highest price in more than a year.

“Any stimulus by the ECB is reason enough to bolster shares, especially in Portugal’s banking sector, which has been under pressure because of the debt crisis,” said Diana Gomes, a trader at Orey iTrade in Lisbon.

Banco Comercial Portugues SA (BCP), the country’s second-biggest bank, advanced 6 percent to 8.8 cents. The company said yesterday that the subscription period for the sale of 500 million euros ($633 million) in new shares will begin on Sept. 14.

To contact the reporter on this story: Henrique Almeida in Lisbon at halmeida5@bloomberg.net

To contact the editor responsible for this story: Jerrold Colten at jcolten@bloomberg.net


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