- Big stocks such as Repsol and Santander impress on Tuesday
- Nicolas Correa shoots up after results from OHL
The Ibex 35 outperformed other European markets and rose by 0.96% to 9,555.50 points as it was supported by Ferrovial and Tecnicas Ruidas, following strong results which pleased the market. The index ended February with a rise of 2.6% and finishes near annual highs of 9,623 points.
- 28,920€
- 0,28%
- 11.711,800
- 0,47%
- 10,600€
- -2,21%
In the case of Ferrovial, Goldman Sachs analysts raised its valuation by 2% to 22.5 euros, while other brokers such as UBS and Deutsche Bank reiterated their advice to "Buy" with a target price of 20 euros.
In the Ibex, there were also gains for DIA (+3.1%), Banco Popular (+3%), and above all Banco Santander, which was 1.92% higher and led the gains amongst the heavyweight stocks.
Repsol (+1.49%), Inditex (+1.24%) and BBVA (+0.77%) also had good days.
Several companies released financial results on the last day of the month. BME's figures led to a 1% rise, and OHL rose 4.6% despite showing losses of 400 million in 2016. Grifols dropped 0.6% and was one of the worst performers in the Ibex, although the wooden spoon went to Merlin Properties with a fall of 1.61%.
Donald Trump will take centre stage once again on Tuesday as he delivers a speech to the US Congress. On Monday he announced an increase of 54 billion dollars, a rise of 9%, in defence spending.
Trump will deliver his first speech to the legislature today and argue for his policies that he aims to implement in the coming months.
While Trump continues to attract controversy, Wall Street appears to be unstoppable as the Dow Jones marches towards its 13th consecutive record high. Investor Marc Faber upped his pessimism and warned that sales of US stocks are imminent, saying that they will be like an "avalanche".
In the macro realm, the US published its second forecast for GDP for the fourth quarter, which remains at 1.9% compared with the 2.1% forecast. "We expect that economic growth will be maintained by a firm pathway in 2017, despite the uncertainty the forecasts are higher than normal," pointed out Barclays.
Technically speaking, Bolsamanía technical analyst Cesar Nuez commented that the Ibex is "looking towards the upper resistance of 9,623 points."
"In order to see a technical improvement we should expect to pass this mark. Looking downward, the support is found at 9,236 points."
