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Portugal's CTT shares jump on market debut

Portugal's CTT shares jump on market debut
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Shares in Portugal’s postal service CTT rose on the Lisbon stock exchange as they went on sale for the first time on Thursday.

Privatising it was part of the bailout deal with the European Union and International Monetary Fund.

By selling 70 percent of the mail service, the Portuguese state benefits to the tune of 580 million euros.

There was strong demand for the shares despite declining postage volumes and CTT’s dependency on the Portuguese market.

Analysts said investors were keen because they saw potential earnings from the creation of a postal bank.

Financial services currently make up eight percent, or 58 million euros, of CTT’s sales and last month the Bank of Portugal authorised it to set up a banking arm if future shareholders opt to do so.

The shares were also popular because they come with a dividend.