Investors collect profits from an Ibex hampered by Endesa and banking sector

A negative day for the Ibex 35, which closed with losses of 0.42% to 11,049.20 points, while the rest of the major European indices saw moderate gains. The main hampers for the Spanish index were the big banks and Endesa. Investors have decided to collect their profits after strong gains of recent weeks.

IBEX 35

11.435,700
-0,28%

Electrical firm Endesa fell 4.11% after reporting its results for the first quarter, which were considered weak by investors. Analysts from Renta 4 reduced its recommendation from Outperform to Hold.

In addition, BBVA fell 2.02% after recent gains accumulated and negative analysis from Berenberg, which valued its shares at only 4 euros and recommended Sell. Banco Santander fell 1.71%, and Bankinter by 1.8%, followed by Caixabank (-1.51%), Bankia (-1.5%) and Sabadell (-1.22%).

On the gains side, Banco Popular was the best performer in the Ibex, in a day in which Bolsamanía reported that one of its investors, Marshall Wace, reduced its position to Short at lows of six months. ACS (+1.7%) and Amadeus (+1.69%) were the other most profitable values in the Ibex.

In the general stock exchange, strong gains were recorded for Sacyr after beating forecasts in its results. Bankinter pointed out the growth of the business and the strength of its construction business. In other company news, OHL (+3.75%) confirmed the resignation of Javier López Madrid as a board member following the Lezo operation.

Emmanuel Macron’s victory in the French elections continue to affect markets. Experts are clear - it is the best result Europe could have hoped for. “Although Macron’s victory is good news for the markets, it is not an easy task for the young leader, who faces several challenges on the domestic front,” Victoria Torre from Self Bank said.

Oil is also being talked about today ahead of the important meeting of OPEC of 25 May, in which the organisation will decide whether to extend its production cut or not. Much is being speculated about this possibility. For the moment, Brent crude continues its short-term losses and fell 1% to $48.77 per barrel.

TECHNICAL ANALYSIS

“We have seen two consecutive sessions of the Ibex 35 moving in a narrow range of prices. As such, the index hit new annual highs in the opening minutes on Monday, and since that has been falling moderately. The losses are a simple consolidation after a rally of 8% since the first round of French elections,” said José María Rodríguez.

“We are seeing a high which reads ‘buy with the rumour and sell with the news’. What we must know is that even when we happen to see the significant falls, unless they take us to the support level of 10,530 points things will not change.”

“We would simply be adjusting the significant gains accumulated over the past year. The upward tendency in the medium and long term remains intact.”