The Ibex closes the week flat after the latest falls from Inditex

The Ibex closes the week as the lowest European index after closing with a 0.55% fall down at 9,822 points, pulled by the strong losses from Inditex (-7.06%). Also IAG (-5.19%) has slowed the index after publishing its 2017 results, where it earned a 3.5% more.

Index has been the big burden for the Spanish index this Friday, after registering its biggest stock fall since 2009, when it lost a 10.3%. The company lists at 25 euros and in just two months of 2019 it has dropped a 13% in value. JPMorgan and Citi have cut their rating before the publishing of the results, the next March 14 and have reduced by 120 points their gross margin.

IAG has been the second lowest value after dropping a 5.42%. The company has presented its results this Friday. The airline group had a 2017 net profit of 20.21m a 3.5% more, although experts point out that the results don’t perform at operative level.

Also in red Sabadell (-3.37%) that has presented its Directo Plan in which it outlines the strategy for 201-2020. For 2020, the bank expects to earn over a 75% more, 1.4bn euros. Losses also in the majority of banks ( (BBVA: -0.85%; CaixaBank: -0.72%;Bankinter: -0.55%; Santander: -0.42%). Bankia is the only bank that closes in green (+0.42%) after announcing an acquisition of 50% of the Caja Granada Vida and Cajamurcia Vida for 225m.

As for the rising values, Cellnex is the highest riser (+3.98%) after announcing yesterday that it would reduce the number of job juts in the ERE announced in Spain. Also DIA (+2.44%) boosted by the Deutsche Bank BUY rating and Gas Natural (+2.4%).

In the main board, we should point out the falls of Almirall of 6.6% after having been sent by mistake their 2017 results in which it listed losses of 303.9m of euros.

The Spanish index has continued to move away from the 9,900 points. Right now there is a lack of catalysts that prevents the index and the rest of the stocks to react in a stronger way. The bad news is that when in the Ibex the blue chip fails the index fails with it and today Inditex and the banks have fallen. The good news is that it looks like the index seems to finally have the support of Telefónica. The operator keeps rising on Friday (+0.8%) after the increase in value it registered in the past session (+3.8%) with the publishing of its results that impressed the market and analysts.

EUROPE AND MACROECONOMICS

In the rest of the European stocks, moderate earnings, with the Ibex leading the losses. The Footsie has also closed in red. Meanwhile the rest of the stocks list little earnings.

In the macro scenario the Eurozone prices have listed a break in their first steps of the exercise, dropping a 0.9% in January, placing the interannual rating in 1.3%.

“In a day with barely any publishing of important results, the financial markets will look for signs from the Fed on the outlook of the economy and the monetary policy (...). The proceedings of the January meeting showed that the Fed is more optimistic on the US economy (...) This means the financial markets will closely watch the speakers of the Fed to check if they show signs that there will be a fourth rise in rates this year”, point out the experts at Danske Bank.

TECHNICAL ANALYSIS

According to José María Rodríguez, technical analyst in Bolsamania, the Ibex is ending the week without practically any changes “without being able to attack the 9,900 resistance but also without setting our path on to the year lows”.

Nevertheless, the analyst points out that the two biggest names on the index “Banco Santander is still stronger than BBVA”. Also regarding Telefónica “it’s still a downwards figure but at least it’s building a new rising low this week.

As for Inditex, “the ugly duckling in the session” has rebounded recently and pulled back to its support, but has fallen to mark lows in 24.75 euros, levels we haven’t seen since 2015. The textile giant has accumulated a fall from historical highs in 2017 of over 30%.