Ibex flirts with 11,000 while Popular occupies headlines once again

The Ibex 35 closed with light gains of 0.22%, which allowed it to look towards 11,000 once again (10,982.40 points) after a session on Monday which saw it finish 0.56% higher. Among the big stocks, there were gains for Iberdrola and Repsol.

IBEX 35

11.467,300
0,24%

All things considered, the market once again looks towards Banco Popular. The bank confirmed its interest in “diverse entities” and said that these would be formalised today. It has proceeded towards the first exchange of information with those entities interested in a possible acquisition.

The bank also pointed out that there had been no firm offer, and that it had not taken any concrete decision on how it would proceed from this point. There was high volatility in the bank’s share price today, rising and falling 4% before finally closing with losses of 1.13% to 0.697 euros.

Euskaltel announced the purchase of Telecable for 686 million euros, and outside of Spain, Easyjet fell 3% after registering losses worse than expected. OHL’s (-1.5%) ex-president Juan Miguel Villar Mir was implicated in the investigation into the “Lezo case”.

The best performers on Tuesday were DIA (2.22%) and Red Electrica (+1.85%), while the worst performers were Ferrovial (-1.62%) and IAG (-1.37%). The airline was seen affected by the poor behaviour of Easyjet after its results.

In macro terrain, politics once again dominates. Firstly, Donald Trump was in the news again after The Washington Post published a report that he revealed classified information to Russia. Trump denied the allegations.

France now has its new prime minister, a man of the rights Edouard Phillipe, appointed from the conservative party. Emmanuel Macron met with Angela Merkel on Monday. The two leaders said that the electoral victory of Macron could revitalise French-German relations, which has been for a long time the driver of EU policy.

British commerce secretary Liam Fox said on Monday that the UK is an important part of the free trade despite its plans to leave the EU. Fox underlined that Britain will not pursue isolationist trade policies and criticised other nations for a deceleration in international trade.

Regarding data on Tuesday, GDP in the eurozone rose 1.7% in the first quarter, in line with what was expected.

TECHNICAL ANALYSIS

“Third session of gains which put the Ibex at the doors of 11,000 points. Although they are slight, it now approaches the round figure, a psychological one. In fact, the true resistances can be found at annual highs of 11,184 points and above there is little until 11,885, highs of 2015,” said Bolsamanía technical analyst José María Rodríguez.

“On the support side we see lows of last week at 10,823 points and below that range of prices is 10,377 points. In general terms we remain positive on the Ibex 35 but it’s not incompatible that we see ourselves going between the highs and lows laterally,” he added.