Banks and Inditex drag Ibex to March lows
Index falls 0.62% to 10,179.8 points
- Banks register the biggest fall, some more than 2%
- Inditex and Telefonica continue to fall
- En castellano: Los bancos e Inditex arrastran al Ibex a mínimos de marzo
Actualizado : 18:11
Another day in the red for the Ibex 35. Banks and other blue chips in the index dragged the market to lows of March of this year after falling 0.62% on Tuesday. It now finds itself at 10,179.8 points, with the financial sector falling more than 3% in some cases.
Bankia picked up the wooden spoon on the day with a loss of 2.93% to 3.91 euros, followed by Caixabank which was down 2.48%, and the third place on the podium went to Sabadell, down 2.2%. More banks followed them with falls of less than 2%, including BBVA (-1.75%), Santander (-1.67% at support level) and Bankinter by 1.66%.
The heavyweights of the index also had a bad day. Inditex was down 1.2% to 31.16 euros, its lowest point since 16 March. Several firms have reduced their target prices for the clothing company ahead of its quarterly results on 20 September. Telefonica was down 0.6%.
Despite the losses on Monday some significant gains were seen. Siemens Gamesa rose 4.06% to 12.81 euros, while Endesa was also up, by 2.75% to 20.76 euros.
Repsol was also higher by 1.83% at 14.71 euros. Analysts at Morgan Stanley raised its rating to ‘overweight’ from ‘hold’, raising its target price at the same time to 17.50 euros from 14 euros per share.
OTHER MARKETS
The rest of the Old Continent saw a mixed bag on Tuesday. The DAX 30 was higher by 0.19%, but the FTSe 100 fell 0.46% and the CAC 40 by 0.3%. Wall Street saw losses of more than 0.5% off the back of continuing tension with North Korea.
In forex, investors are now looking towards the ECB meeting on Thursday. With the euro at $1.1919, Mario Draghi will have to make sure everything is in place in order to not upset markets any further.
In commodities, oil is rising strongly. Brent is up 2.35% to $53.37 while West Texas is up 3.34% to $48.85.
TECHNICAL ANALYSIS
Bolsamanía technical analyst José María Rodríguez says that today’s session was a ‘clear signal of weakness in the Ibex 35 after filling the lower gap in the morning. Everything points towards testing the resistance of 10,134 points.”
“The main guilty party in this drop is the banking sector,” he added. “And we know that the Ibex 35 is always going to struggle without the help of the banks.”