The people drive the pace: Discovery of the markets

March 01, 1998

Portugal is a western European success story. For the past few years its citizens have grown wealthier, have started spending more and have grown keen to invest. The country's economic indicators could hardly be better and it should qualify for European monetary union in the first round. But Portugal's retail investors are leaving its domestic capital markets behind. The stock market remains small, companies are nervous of borrowing and the banks are wary of expansion. Margaret Popper reports on a country nevertheless charting a new course with a new-found sense of confidence

A SUPPLEMENT TO EUROMONEY/MARCH 1998: PORTUGAL

The brand new Lisbon Bolsa, slicing a gleaming alabaster wedge out of the blue Portuguese sky, is the perfect symbol of the changes that have taken place in this country over the past two years. On the outside the building is everything that is modern - all angles, with the requisite tower of black glass and steel rising from the white base. Inside, the technology is state of the art. Pass through the tight security and you can catch a glimpse of a trading floor overhung by massive digital read-outs.

But on a Wednesday afternoon, the trading room is empty. Vacant chairs are lined up to receive a presentation from an empty podium. The only life is in an anteroom to the exchange floor. Here a group of 20 or 30 elderly men in shirtsleeves and cardigans, one or two wearing soft caps, are staring up at two video displays suspended from the ceiling. The small screens flash stock quotes at them. Smoking cigarettes and swapping stories, they would look more at home under a large olive tree in the Portuguese countryside.

The people drive the pace: Discovery of the markets

A SUPPLEMENT TO EUROMONEY/MARCH 1998: PORTUGAL

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