Portugal's CTT shares slump after guidance cut

** Shares of Portugal's postal services company CTT Correios de Portugal CTT.LS fall around 8% after the group cut its core earnings guidance

** CTT reported Q3 recurring EBIT down 34% year-on-year to €17.8 million, and reduced its full-year expectation to about €80-85 million from the previous forecast of €105-110 million (excluding non-CEP)

** "The main focus is on the more severe-than-expected impact of changes to the international customs regulations, which have caused a sharp drop in cross-border e-commerce volumes", says João Queiroz, head of trading of Banco Carregosa

** Queiroz adds that the downward revision to earnings target reinforced the perception that the operational recovery will be more gradual and slower

** However, volume stabilisation, the implementation of mitigation measures and potential unlocking of value associated with Banco CTT may help to recover investor sentiment, he says

** CTT shares are on track for their worst trading day since March