• On Wednesday the index put an end to the 10 day red streak
  • On Thursday it led the gains among European indices
  • Inditex once again moves close to 30 euros, thanks to a rise of 2%
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Another day in the black, The Ibex continued its rebound but just fell short of hitting 10,100 points on Thursday. The index closed 0.75% higher at 10,088.7 points. As a result, the index was the best performing index in Europe, stringing two positive sessions in a row after the previous 10 finished lower.

IBEX 35

  • 11.622,700
  • -0,76%

Inmobiliaria Colonial was the best stock on Thursday, with a rise of 3.4%. The company continues to be in the news for the offer it made for Axiare (+0.08%), which eventually was rejected. Melia Hotels was the second best performer with a gain of 3.25% to 10.97 euros. Despite the gain, Renta 4 cut its target price to 12.7 euros per share from 14.9 euros.

Among the stocks which closed higher was Inditex by 1.95%, which brings the clothing company to 30 euros. Viscofan gained 1.85% after it reported the acquisition of Supralon for 12m euros.

On the fallers side, Indra picked up the wooden spoon with a loss of 3.69% to 11.6 euros. It was followed by Repsol with a fall of 0.83%. Tecnicas Reunidas was down by 0.62%.

In the general stock exchange, Prisa closed with a fall of 1.89% to 2.59 euros after it named Manuel Polanco as president in place of Juan Luis Cebrían.

OTHER MARKETS

The rest of the European markets closed in positive, although they were less pronounced than the Ibex. The CAC 40 in France rose 0.69%, the DAX 30 by 0.57% and the FTSE 100 in London by 0.24%. However, investors remain alert to Wall Street which is rising strongly on news of fiscal reform in the US.

“Today it’s likely that the vote takes place in the House of Representatives for the law created by the Republicans. If the law passes, markets will breathe a sigh of relief, but if it does not, markets could experience a more serious correction,” Link Securities analysts said.

Oil was grabbing attention again on Thursday and turned around losses to move higher (Brent +0.05%, West Texas +0.18%). Crude fell in recent days after the warning from te IEA that demand will fall in 2017 and 2018. Whatever happens in the next three weeks it will be important as the OPEC meeting takes place on 30 November.

In the macro calendar, the final reading for CPI for the eurozone rose 1.4%, as did the retail sales in the UK. In the US this evening employment figures will be released.

TECHNICAL ANALYSIS

“What’s really important is that we followed on from Wednesday, when the index was able to close in positive after perforating the important support of 9,920 points,” explained Bolsamanía technical analyst José María Rodríguez.

“It’s true that the Ibex was able to rescue itself to an extent, but the problem is that there are no major resistance points until 10,600 points, the highs of the first day of the month.”

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