Ibex 35 sees losses as banks, Telefonica, Inditex falter

The Ibex 35 ended the day down 0.4% at 10,300 (10,316.50) after falling 1% on Friday and not being able to confirm the surpassing of the resistance levels. Santander, BBVA, Bankia, Sabadell and other big stocks such as Telefonica and Inditex were the main drags on the index after new events in Catalonia.

Investors are far from believing the crisis has subsided. More still it has become known in the last few hours that Carles Puigdemont will remain in Belgium ahead of a potential return to Spain on 17 November. The potential for him to participate in elections on 21 December is growing. The feeling is that the pro-independence parties will win again, according to polls.

In this sense, against the improbable scenario of independence for the region, Moody’s pointed out that it would bring consequences for business and homes in the region, as the payment of loans would become a problem. BBVA Research warned that the political tension is potentially a “significant risk for the economy”, although it added it will not be felt until 2018.

AMADEUS

Returning to the Ibex, the best stock of the day was Amadeus, which gained 2.4% to 60.2 euros per share. The IT group received various positive recommendations from the likes of JPMorgan and Deutsche Bank and hit new record highs. In the higher part of the table it was joined by Tecnicas Reunidas, which was up 1.4%, while Cellnex was up 0.83% and Melia Hotels by 0.69%.

On the other hand, Santander (-1.23%), Sabadell (-1.13%), BBVA (-0.94%) and Telefonica (-0.82%) hampered the market. Grifols and Indra also fell on Monday after reporting results.

FLUIDRA, ALMIRALL AND MASMOVIL

In the general stock exchange Fluidra was in the news. The company shot up almost 19% after it announced its merger with US firm Zodiac. Almirall and MasMovil also gained in the market more than 7%. The pharmaceutical firm said it made losses of 99.7m euros against a 103.5m euro profit in the same period in 2016.

Away from Spain, Donald Trump was in the news for his trip to Asia. The US President of North Korea that “no dictator should underestimate the determination of the US”. Pyongyang responded warning of a “merciless punishment”.

In data releases, October PMI services for Europe was released and stayed at 55 points, above the expected 54.9. There is a meeting on Monday of finance ministers for the Eurozone also.

TECHNICAL ANALYSIS

José María Rodríguez, technical analyst at Bolsamanía, explained that despite the slight losses on Monday there is little new with respect to the comments he made on Friday. “In the end we were not capable of closing the weekly graph above 10,420 points and the breaking the resistance was not confirmed.”

Despite this, the expert is optimistic and thinks that all is not lost yet. “In a sense that we have lows and highs growing in the short term as those that we have from the beginning of October (9,922) we cannot lose hope. In fact the losses of today could form a typical support of the crest of the upward movement.”