Small investors on the stock market are more numerous and expressive in Lisbon than in some other European capitals according to the president of Euronext Lisbon, Isabel Ucha in an interview with journalists.
The growth in the importance of the individual investor in stock markets across the world is a global trend, but is “more evident in Portugal” said the president of Euronext Lisbon in a meeting with journalists on Thursday.
The percentage of private individual investors on Lisbon Stock Market represents 14%, above Oslo (9%), Amsterdam (5%) and Paris (3%), or Brussels (3%).
This phenomena can partly be explained by an interest from young small investors who are more aware of the financial markets.
“The retail investor is growing because the younger generation is much more master of its financial life and because the banks themselves have been providing a lot of information which is presented to investors”, said Isabel Ucha.
Nevertheless, the Euronext Lisbon president makes it clear that despite this being a “trend to follow”, It does have a duty to prevent the risk of “gamification” sometimes used by platforms to attract younger investors and which consists of equating financial investments with a game.
“We take great care to contribute towards informing investors so that they have a clear idea (of what they are doing) and that they invest in a diversified way, applying all those principles of management that they should have,” she told the journalists.
Isabel Ucha also announced the launch of new products this year such as options — financial derivatives instruments on shares from EDP, Jerónimo Martins, and Galp. The success of these derivatives will determine if these types of contracts will be extended to include other PSI listed companies.
Euronext will also offer 350 US and European shares (that are not listed on Euronext) denominated in Euros.
Euronext will also launch Bond Indices (Index-linked Bonds). As for potential IPOs in 2024, simply said that the current market conditions were pointing in that direction. “I won’t say the window is open, but it’s ajar.”