Ibex close to 11,000 thanks to 5% bump for Santander

The Ibex 35 closed 0.75% higher on Thursday thanks to a strong 5.24% push from Banco Santander. The index passed major challenges in June so far, the solution of the Popular situation, with calmness. The Ibex led the gains in Europe, followed by the Dax 30 in Germany on 0.32%, while the Cac 40 in France was flat, while the FTSE 100 fell 0.38% and the PSI 20 0.93%.

The Ana Botín-led bank led the table and was followed by ArcelorMittal (1.95%) and Indra (1.77%), BBVA and Bankinter were the other banks which finished higher. The former was 1.54% and Bankinter by 1.07%. Amadeus and Gestamp hit record highs at 43.50 euros and 5.95 euros respectively.

The poor performers of the session were Bankia, with a loss of 1.67%, Melia Hotels by 1.57% and Mediaset by 1.25%. Among the big stocks of the Ibex, Inditex was 0.64% higher, Telefonica also by 0.55%, while Iberdrola was slightly lower on 0.07%.

As well as Santander’s gains, there have been significant losses in the general stock exchange today. Seven stocks have lost more than 10%, including Liberbank (-18.32%) Duro Felguera (-17.74%), Prisa (-15.62%), Service Point (-15%), Pescanova (-14.81%), OHL (-12.07%), and Gam (-10.53%).

Regarding the ECB meeting, Mario Draghi began the road towards removing stimulus, but indicated that it will be very slow owing to inflation. On explaining the fixed interest rates during the meeting i n Frankfurt, he ruled out the potential of reducing them any further.

The meeting also referenced the Santander/Popular decision. Specifically, its vice-president Vitor Constancio said “the decision was taken for problems relating to its liquidity and the leakage of deposits.”

Turning to the general election in the UK, citizens there will vote on Thursday until late in the day, and the result is likely to be known in the early morning. It’s not clear what would be the best result for the market, although many analysts agree that a victory for Theresa May would be the best option.

Oil continues to have significant ramifications in the markets. At the moment it is flat with Brent at $48, while West Texas is at $45.80 after yesterday’s inventory data. Crude has not lifted its head since 25 May, when the OPEC did not agree to cut production levels.

TECHNICAL ANALYSIS

José María Rodríguez, technical analyst at Bolsamanía, said that “despite the gains on Thursday we carry on much the same. In fact it can be said that we have been heading in the same direction for the last two and a half weeks, between 10,800 points and 11,000. The fact that we finished close to the upper level opens the possibility that, sooner rather than later, that we head towards breaking annual highs of 11,185.”

In addition he said that “Santander’s movement was interesting and confirms the lower gap of the session on 18 May at 5.958 euros and leaves the way open to annual highs of 6.35 euros. Now what we need is for BBVA to loop the loop and head above 7.6 euros.”