Ibex salvages 10,700 in volatile session

Summer officially arrived today, and as with most summers, there is likely to be a key theme for the markets over the next few months. Oil looks the favourite to be just that, with crude now at annual lows not seen since last November, when the OPEC decided to reduce production to 1.8m barrels daily.

The cuts are not being carried out as forecast, or specifically the effects are not being felt as were initially expected. Now the commodity is quoting around $45 in the case of Brent.

Oil prices are affecting those primarily related with the black liquid. Repsol and Tecnicas Reunidas were among the worst performers in the Ibex, with the oil firm falling 0.62% and Tecnicas rising 0.68%. The former saw high volatility and fell after the weekly crude inventories fell slightly above what was expected.

In the company sense, there were significant losses for Aena (-1.05%) after Goldman Sachs recommended ‘sell’ on its shares, as it feels its rally has come to an end. With regards to the gains, the best performer was IAG (+2.48%), followed by AreclorMittal (+2.10%) and Acerinox (+1.67%).

In addition, DIA celebrated its third Capital Markets Day in the history of the company. On Wednesday it began in London and tomorrow the meeting will be repeated in Madrid. On Tuesday, Moody’s cut the rating of the company to ‘stable’ from ‘positive’.

Among the big stocks, Iberdrola rose 0.54% after Citi analysts pointed out the division of its company makes strategic sense and will increase value for its shareholders. Banco Santander fell 0.12%, BBVA 0.04%, while Telefonica fell 0.57%.

Pescanova rose 30% yesterday, and another 20% on Wednesday. In the general stock exchange there was also strong gains of 14% for Service Point. A board member of the company sold 6,683 shares at 1.45 euros and subsequently bought 9,596 for 1.24 euros.

TECHNICAL ANALYSIS

Thursday’s moment was interesting, especially because it checked out with what we knew: that the Ibex is triangulating (building decreasing highs and increasing lows). This morning we said before the open that index approached an important support of 10,600 points, the lows of last week. After hitting a session low of 10,616 points money entered the market to support the Ibex,” said José María Rodríguez, technical analyst at Bolsamanía.

“At the base of the triangle, it has worked with maximum precision. Arriving to this point, now it’s a matter of looking towards resistances and the closest one we have is 10,901, with even more relevance at 11,050 points. In theory above 11,050 would give an important sign of strength.”