Foreign states hold over 15% of Portugal’s PSI

State-backed foreign investors control more than 15% of Portugal’s PSI, according to an ECO survey, underlining the role of public capital in Lisbon’s stock market as the Portuguese state also moves to expand its own presence.

ECO found that foreign governments and public-sector entities hold stakes worth more than €14 billion in companies listed on the PSI. With the index’s market capitalisation above €92 billion, that gives them an estimated 15.3% share of the market. Angola and China are the largest state-linked investors, with holdings worth almost 12% of the PSI between them.

On the Angolan side, Sonangol holds 19.9% of BCP, valued at €3.26 billion, while Esperaza — which has Sonangol as a shareholder — has an indirect 17% stake in Galp through Amorim Energia, worth more than €2.4 billion. Chinese state-controlled groups hold 21.4% of EDP through China Three Gorges and 25% of REN through State Grid, while CCCC owns nearly a third of Mota-Engil. ECO estimates China’s total investment in listed Portuguese companies at about €5.1 billion.

Other state-linked investors include Norway’s sovereign wealth fund, with stakes in eight Portuguese listed companies worth around €1.4 billion, and Canada’s CPP Investments, which holds 5.44% of EDP in a position valued at more than €1 billion. Singapore’s GIC also owns more than 4% of EDP Renováveis, worth €635 million.

If Portugal is included, the Portuguese state would rank as the PSI’s third-largest public investor, with €1.6 billion invested in Galp and, following Parpública’s planned return to REN, in that company as well. ECO said the planned creation of a Portuguese sovereign fund could further increase state ownership in strategic listed sectors such as energy, banking, communications and infrastructure.

Originally published at Eco.pt