- BBVA and Banco Sabadell reported results
- Ibex suffers from volatility owing to pressure from Catalonia and ECB meeting
The Ibex 35 was once again conditioned by the political crisis in Catalonia on a historic day. The Catalan parliament has approved a unilateral declaration of independence, paving the way for the invoking of Article 155. Mariano Rajoy spoke in the Senate to say there was ‘no alternative’ to the action. The Ibex fell behind its European neighbours after strong gains yesterday, falling 1.45% to 10,197.50 points. In the week the index is down 0.24%
- 11.659,200
- 0,35%
From now, a scenario of very high political uncertainty will be open, whose consequences for equities in Spain are difficult to anticipate. The cabinet will meet this evening to approve measures necessary to “restore legality in Catalonia.” The regional government is likely to be resolved and president Carles Puigdemont deposed, along with the rest of the government.
Dissolving the parliament will likely lead to elections within six months, while the chamber will keep working in a limited capacity.
RESULTS SEASON
In addition, the index was also alert to company results, after Super Thursday. On Friday it was BBVA’s turn. The bank reported profit of 3.5bn euros in the first nine months of the year, a 23% increase. This rise was due to recurring deposits, control of spending. The bank was down 2.6% at the close.
Banco Sabadell also reported. The bank gained a profit of 653.8m euros to September, 1.1% more than last year. It explained that the results allowed its CET1 ratio to hit 13%. Sabadell fell 4.85% and was the second worst performer in the Ibex.
IAG continued the results, making 1.567bn euros and leading the losses with a drop of 6.26%. In the Ibe, as well as IAG, Sabadell and BBVA, there were falls for Meliá Hotels (3,04%), CaixaBank (2,74%), Mapfre (2,47%), Colonial (2,36%), Santander (1,98%), Telefónica (1,22%), Endesa (0,75%) Inditex (0,7%). The stocks which finished higher were Grifols (+0.73%), Viscofan (+0.64%), Acciona (+0.6%), Repsol (+0.52%) and Enagás (+0.46%).
TECHNICAL ANALYSIS
“A very volatile session, similar to Thursday, where we lost almost all gained the day before. From a technical point of view, the resistance is now at 10,410-10,420 points, the highs of September and of Thursday,” explained José María Rodríguez, technical analyst at Bolsmanía.
