MADRID 25 Oct. () –
The Ibex 35 closed this week with a cumulative decline of 0.95%, reaching 11,812.5 points, thus ending a streak of two consecutive weeks of growth that allowed the index to approach the symbolic level of the entire 12,000, while the last five days have been marked by the start of the business results season.
Despite this week’s decline – in which the declines in banking, energy and construction sector stocks have had a large part to play with – the main indicator of the Spanish market so far this year has seen a cumulative revaluation of almost 17%, according to market data consulted by Europa Press.
Entering the particular analysis of the week, analyst Manuel Pinto explained in a comment to Europa Press that the behavior of the banking sector has been the main cause of the limited potential of the national selective during the last few days, weighed down by the presentation of Bankinter: ” “It has offered doubts both because of the drop in the interest margin due to the increase in the cost of deposits, and because of the drop in its credit portfolio,” he explained.
Specifically, Bankinter obtained a net profit of 731 million euros between January and September, which translates into an increase of 6.8% compared to the same period in 2023.
Pinto has stated about the banks that this “is not the dream start for a key industry in the index” and has advanced that, in line with this matter, the progressive rate cuts of the European Central Bank (ECB) in the coming months could reflect a new reality.
“On the opposite side,” Pinto pointed out, “we find Iberdrola, which has presented extraordinary results in a very positive environment for public service companies.”
The company led by Ignacio Galán recorded a net profit of 5,470.7 million euros in the first nine months of the year, which represents an increase of 50.4% compared to the same period of the previous year, driven by capital gains millionaires registered with the sale of assets in Mexico.
Continuing with the business agenda, names such as Rovi have also stood out, ruling out the entry of investors in its third-party manufacturing business; Repsol, favored by oil prices; or Puig, with a price encouraged by China’s recovery data.
Companies with exposure to the United States have also stood out, this being the case of Fluidra and Grifols.
Thus, within the Ibex 35, the declines of Solaria (-7.1%), Ferrovial (-4.52%), Sacyr (-4.32%), Acciona Energía (-3.85%) stood out during the week. ), Bankinter (-3.6%), Banco Sabadell (-3.42%), Colonial (-3.23%), CaixaBank (-3.21%), Cellnex (-2.77%), BBVA ( -2.67%) and Telefónica (-2.3%).
On the other hand, the stocks with the best weekly performance have been Grifols (+2.53%), Repsol (+2.09%), Puig (+1.62%), Inditex (+1.6%, although it has not consolidated historical highs by reaching 55 euros per share yesterday), Fluidra (+2.58%) and Mapfre (+1.12%).
Regarding the macroeconomic agenda, this Friday – in which the Ibex has subtracted 0.23% – has been marked by the publication of the EPA for the third quarter, when unemployment fell by 1,200 people, to a total of 2.754 million unemployed, placing the unemployment rate at 11.21%, the lowest since 2008. Likewise, the number of employed people increased by 138,300 people, up to a total of 21.83 million workers.
Likewise, at the national level it has been highlighted that the annual rate of the general Industrial Price Index (IPRI) fell 5.2% in the month of September, 3.8 points below that registered in August.
At the European level, Pinto highlighted the PMIs of economic activity in October: “Symptoms of a slight deterioration in the services sector that until now offset the fall in manufacturing; the PMIs have been especially bad on this occasion in France, while “Germany has generated greater confidence in recent days.”
For its part, it has also been published that the confidence of German businessmen has risen in October and has broken a streak of four consecutive falls, as reflected in the index prepared by the Munich Economic Research Institute (Ifo), which has been situated at 86.5 points from 85.4 the previous month.
The European markets of the Old Continent have shown mixed results in the week: London has added 0.08%; Frankfurt 0.72% and Milan 1.91%, while Paris has joined Madrid in the losses by subtracting 1.81%.
In other geographies, Wall Street is set to end the week lower due to increases in Treasury bond yields, as traders reduce expectations of rate cuts from the Federal Reserve (Fed) and expect a possible victory of Donald Trump, which would imply, according to Pinto, strong increases in the country’s fiscal stimuli.
Regarding raw materials, a barrel of Brent was trading at $75.72, 3.65% more than last Friday’s close, while West Texas Intermediate (WTI) stood at $71.46, a 4% more.
In the debt market, the yield on the Spanish bond with a 10-year maturity has closed at 2.993% after adding one tenth in the week. In this way, the risk premium with respect to the German bond has stood at 70.3 points
In the currency market, the euro fell 0.55% cheaper in the week against the dollar, trading at an exchange rate of 1.0808 ‘greenbacks’ for each unit of the community currency.
On the other hand, an ounce of gold rose by 0.5% and was trading at $2,735 – last Wednesday it reached a new all-time high at $2,758, while bitcoin fell 1%, reaching 67,700. dollars.
KEYS FOR NEXT WEEK
“Next week promises to be one of the most volatile of the remainder of the year,” Pinto said, while the presidential elections are just around the corner and at a macroeconomic level, employment, GDP and PCE in the United States.
Companies such as Amazon, Alphabet, Apple, Microsoft or Meta will also present quarterly results internationally.
In the Spanish scenario, investors’ attention will focus on the avalanche of results from listed companies. Among the Ibex 35, Santander, Mapfre, Endesa, Aena, Naturgy, CaixaBank, BBVA, Banco Sabadell and Indra stand out, among others.
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