Portuguese stock market reports record first-half profits

Portuguese companies listed on the PSI index reported record profits for the first half of the year, totaling 3,658.2 million euros. This performance was largely driven by the energy and banking sectors, specifically the EDP Group, Galp Energia, and Millennium BCP, which together accounted for over 62% of the total profits.

While the energy and banking sectors saw significant gains, other sectors faced challenges. Exporters experienced negative impacts due to adverse weather conditions and price increases linked to geopolitical tensions in Iran. Despite these discrepancies, the overall profitability of the Lisbon stock exchange rose by 13.4% compared to the same period in the previous year, excluding the impact of the Secil sale by Semapa.

On the macroeconomic front, the Portuguese economy shows resilience with a robust labor market and significant debt reduction, with the debt-to-GDP ratio falling to approximately 90%. However, fiscal constraints remain tight. Finance Minister Joaquim Miranda Sarmento has indicated that future decisions regarding income tax (IRS) reductions will depend on the evolution of the economy and public accounts, as the government prepares for the 2027 State Budget amidst limited fiscal maneuvering room.