Losses in Lisbon weigh on European shares
* Portugal's PSI-20 market falls more than 2 pct
* FTSEurofirst 300 down 0.3 pct
* Take more defensive approach -Sunrise Brokers strategist
By Sudip Kar-Gupta
LONDON, May 16 (Reuters) - European stock markets fell on Friday, retreating further from multi-year highs reached earlier in the week, as the Portuguese market underperformed for a second day on concerns over its economy.
The pan-European FTSEurofirst 300 index was down by 0.3 percent at 1,353.78 points in mid-session trading, falling back from 6-year highs reached on Thursday, while the euro zone's Euro STOXX 50 index fell 0.5 percent.
Germany's DAX, which hit a record high of 9,810.29 points on Thursday, fell 0.7 percent to 9,586.59 points while Portugal's smaller PSI-20 index underperformed with a 2.4 percent drop.
Traders said the Lisbon market was impacted by a 10 percent drop in Portuguese bank Banco Espirito Santo after BES announced a discounted share issue to raise capital.
They added that ongoing concerns over the state of Portugal's economy, after data on Thursday showed a shock 0.7 percent drop in gross domestic product (GDP), was further weighing on the market, while Portuguese bonds also fell on Friday. Continuación...