Portugal's Pharol jumps on scrapped capital increase

Pharol SGPS SA

13/12/2018 11:07

** Shares of Portugal's holding company Pharol  PHRA.LS ,
the largest shareholder in Brazil's troubled telecoms company
Oi, soar 9 percent to two-week highs in morning trade as the
company scraps a planned small capital increase.
    ** Pharol on Wednesday canceled the capital hike of up to
55.5 mln euros, which had already been approved by shareholders,
due to unfavourable market conditions.
    ** "Pharol shows a conservative and realistic vision of the
economic setting around it ... pushing the share price higher,"
says Carla Maria Santos, a trader at XTB brokers.
    ** Pharol shares, which usually fluctuate in line with Oi
stock prices, have shed over 22 percent of their value so far
this year.
    ** After paring early Thursday gains somewhat, Pharol is up
5.1 percent at 0.187 euros at 1056 GMT and is the top gainer in
Portugal's PSI20  .PSI20  stock index, down 0.5 percent.

 ((Goncalo. Almeida.thomsonreuters.com@reuters.net))