- DIA earned 6.4% less in period until March and was the worst performer
- Popular falls after recent rebound
- Oil keeps rising after strong gains following fall of weekly inventories
The Ibex 35 fell once again on Thursday to make it four consecutive days of losses after results from Telefonica and DIA. The Spanish index fell 1.57% and closed under 11,000 points (10,861.4) for the first time since 3 May.
- 11.588,400
- -0,74%
In a session marked by losses, Mapfre rose 0.83%, while Gamesa grew 0.73%, ArcelorMittal by 0.49% and Aena by 0.30%, while Viscofan finished flat.
The biggest fallers were Banco Popular, which dropped 6.64%, followed by DIA at 4.31% and Telefonica by 4.02%. Mediaset lost 3.76%, while Melia fell 3.22%.
Analysts found “deceiving” the fall in spain which were demonstrated by the results from Telefonica in the first quarter, despite less financial spending and optimistic forecasts. DIA saw profits reduced by 6.4% in the first quarter and increased its debt by 20%.
In addition, Jefferies lifted the valuations of BBVA, Caixabank, Sabadell and cut Popular’s valuation to 0.80 euros from 0.95. In the general stock exchange, OHL fell 5% after its quarterly results.
Oil markets continued to make headlines. Brent crude is now at $51.01 per barrel (+1.53%) while West Texas is at $48.10 (+1.54%) after gaining more than 3% during the night.
Central bank governors and finance ministers of the G7 group will meet in Bari from Thursday to Saturday. It will focus on inequality, fiscal legislation, cybersecurity and the prevention of financial terrorism. Europe, Canada and Japan can shed some light on the direction it will go with regards to key policies.
Meanwhile, the Bank of England maintained interest rates at 0.25% and revised inflation for 2017. Mark Carney’s organisation expects prices to rise 2.7% in the quarter and finish the year slightly under 3%. The central bank left the door open for a rat rise from 2019.
The European Commission improved its growth forecasts for Spain in 2017 to 2.8%, from 2.3% in February, while it calculated public deficit will end the year at 3.2S of GDP.
José María Rodríguez, Bolsamanía technical analyst, pointed out the “significant losses on Thursday are almost exclusively down to the results from Telefonica. In recent days we have said that today could be interesting if Telefonica could head above 10.63 euros. But the results didn’t please the market, and not only did it not surpass its resistance, but fell through support levels.”
“Focusing on the Ibex, we can’t discard the possibility of the price heading towards support at 10,530 points. The danger would come if the lower gap closes.”
