- Inditex was a hamper after receiving a cut from Berenberg
- This week saw an end to the losing streak
- Oil rose prominently while OPEC considers further production cuts
In the end the Ibex 35 was able to salvage the week. The index registered a weekly loss of 0.8%, as it stayed above 10,000 points. The Ibex fell 0.78% on Friday and is now at 10,010.4 points. It was able to break its longest losing streak in history on Wednesday, but soon returned to red.
- 11.435,700
- -0,28%
Inditex was the main guilty party on Friday. The clothing firm fell 1.65% to 29.6 euros after a drastic cut in its valuation from analysts at Berenberg. Experts reduced its recommendation from ‘hold’ to ‘sell’ and considerably reduced its target price from 35 euros to 24 euros.
Amancio Ortega’s company was the worst performer, and it was accompanied in the bottom part of the ledger by Caixabank, which was down 1.45%, and Enagas which fell 1.3%. The big banks also had a bad day with losses of 0.83% for BBVA and Santander (-0.94%).
On the gains side, only four stocks finished higher. Acciona led the advances with a gain of 1.8%. It was followed by Bankinter with a rise of 0.84%. Oil stocks were trading higher as the commodity’s price rose, with Repsol gaining 0.17%. Mediaset traded 0.4% higher.
Away from the Ibex, banking authorities gave the green light to the renewal of bank guarantees for Duro Felguera to the tune of 31m euros. The stock was flat at 0.48 euros.
OTHER MARKETS
Europe was also in red on Friday. The FTSE 100 was down 0.15%, the DAX 30 by 0.35% and the CAC 40 by 0.36%. Mario Draghi spoke on Friday saying that “any withdrawal of financial regulation would be an error”.
Wall Street was down slightly after Republican tax reform passed the House of Representatives. Experts warn that Donald Trump still has a difficult path to achieving the reforms, as they still have to pass the senate.
Oil continues to be in the headlines as the OPEC meeting on 20 November draws closer, in which it is a further cut in production is expected (currently at 1.8m barrels). At the hour of close, Brent was up 1.87% to $62.51 and West Texas was up 2.3% to $56.42.
TECHNICAL ANALYSIS
Bolsamanía technical analyst José María Rodríguez said that the losses on Friday lack implications of any kind. What’s more, everything that comes about inside the range of prices between 9,900 and 10,600 points will have little permutations.
“That said what really mattered in the week was Wednesday’s session when the Ibex and Santander perforated supports. At the close they both recovered their positions to close higher.”
