16 July 2021
Today, the CMVM published the 2020 "Securities Markets Report" which analyses the evolution of the national market, the main global markets and financial instruments in general.
On the international front, the substantial decline of the economic activity caused an irregular performance of the main stock indices, both in geographic and sectoral terms. This is shown in the evolution and impact of the pandemic situation and the intervention of monetary and budget policy decision-makers. The European (-2.8%) and Latin American (-13.6%) markets registered devaluations, while the North American (+21.4%) and Chinese (+29.0%) markets recorded strong increases. From the second half of the year onwards, concerted action at the international level in the monetary and budgetary plan, allowed for more market stability.
On a national level, in the stock market, the PSI 20 closed the year with a devaluation of 6.1%, which is more marked than that of the main reference index of the Eurozone (STOXX Europe 600), which fell by 4.0%. The company profits that are part of the main index of the Portuguese stock market decreased by 40.1% compared to the same period of the previous year, due to the drop in revenues and pessimism as to the economic recovery which lead most companies to decide not to distribute dividends.
In the debt market, yields on Portuguese public debt securities continued the downward trend of the previous year, reflecting a prolonged period of shallow short-term interest rates in the Eurozone. On the MTS platform, wherein national public debt is traded, the amounts transacted were 94.8 billion euros, a decrease of 28.7% compared to the same period of the previous year.
Issuance of direct State debt through fixed-rate Treasury bonds, increased 52.5% up to 27.75 billion euros compared to the amount placed in the previous year. Contrary to what happened in previous years, there was no variable-rate issuance.
In asset management, the amount managed by collective management increased by 5.9% up to 25.5 billion, mainly due to the increase in UCITS, whereas individual management decreased 22% down to 48.8 billion euros compared to 2019. Also noteworthy is the growing demand for investment undertakings from third countries, with the value placed by foreign UCITS, increasing 3.5% up to 4.8 billion euros.
Further reference is made concerning sustainable investment funds (environmental, social and governance), whose amount under management increased by 31 million compared to 2019. In December 2020, five ESG funds were registered in Portugal, which jointly, managed 303 million euros subscribed by 20 439 participants, mostly natural persons.