- Spanish market continues to be hampered by Catalonia
- Spanish stocks will be penalised until elections in the region on 21 December
The Ibex 35 tried to react on Wednesday after falling below 10,000 points in the previous session, but its answer was hardly convincing. The main stock index in the Spanish market rose 0.21% to 10,013.90 points, after hitting a high of 10,092.40 points.
- 11.635,900
- 0,97%
The market continues to be penalised by political uncertainty as a result of elections in Catalonia, and will continue to be until 21 December when elections take place.
The best performer on Wednesday was Endesa, despite the electric firm lowering its forecasts for 2018 and 2019. However, its promise to part with 100% of its profits as dividends in the next two years pleased investors, its stock up 3% to 18.86 euros.
The second most profitable stock was Viscofan, which gained 2.9% after a positive recommendation from Berenberg. The experts raised the rating to ‘buy’ from ‘hold’ and increased its target price from 54.50 euros to 59.50 euros.
Supermarket chain DIA was the third best with gains of 2.4%, followed by Gas Natural (+1,6%), Repsol (+0,9%), BBVA (+0,5%), Aena(+0,5%) and Iberdrola (+0,4%).
On the lower side, there were few companies. Melia Hotels picked up the wooden spoon with a loss of 2%, while Mediaset was down 1.3%, followed by Amadeus (-1.1%) and blue chips Inditex and Telefonica, which fell 0.2% and 0.1% respectively.
In other markets. The euro was up 0.46% to close to $1.18, while Spanish 10-year bond yields fell 1.5% to 1.457%. Prime risk in Spain was down 2.6% to 110.6 points.
Oil was also up in expectation of what may happen next week in the key meeting of the OPEC nations. The consensus is that cuts will be extended for a further nine months. At closing time Brent was up 0.9% to $63.11, and West Texas by 1.7% to $57.79.
TECHNICAL ANALYSIS
“Despite closing in the black it’s true that swords remain up. At midday it looked as if we would finish happy as BBVA moved away from dangerous support levels of 7 euros, but the Basque bank ended up far away from highs of the session,” said Bolsamanía technical analyst José María Rodríguez.
“This leaves us in the same situation that we found ourselves in during the last few days: crossing our fingers in case our index falls below the support of 9,900. I fear that the result of the equation will not be known until the end of the week.”
