Ibex closes at highest point since August 2015 above 10,500

The Ibex 35 closed 1.12% higher on Wednesday to finish on 10,518.90 points, its highest level in well over a year, since August 2015. It came on a day when shares in Inditex rose 2.43% after Morgan Stanley raised its valuation of the company.

The Spanish index was the best performing market in Europe after closing above the CAC 40 which gained 0.65%. The FTSE 100 fell 0.32%.

Alongside Inditex, ACS also performed well with an advance of 2.41%, hitting a record 33.47 euros. Red Electrica was 1.92% higher. On the losses side, ArcelorMittal fell 0.75%, Mediaset by 0.70% and Acciona by 0.20%.

In the general stock exchange, shares of Abengoa ‘A’ were 23.26% lower while its ‘B’ class shares fell 16.67%. Its share price approaches the limit after a historic crash of 99.8%.

Wall Street had light gains on Thursday of 0.30%, in a day in which US and Chinese presidents Donald Trump and Xi Jinping will meet in Florida to discuss a variety of issues. Among those is the potential avoidance of a trade war between the countries, which would provoke a vast amount of uncertainty in financial markets.

In the oil market, both West Texas and Brent rose around 0.60%. West Texas barrels gained to $51.52, while Brent rose to $54.68.

Meanwhile, the balance of the ECB has surpassed 4 billion for the first time in its history. According to data released on Wednesday, it ended March on 4.1 billion euros, almost a quarter of a billion above the 3.87 billion it was at one week earlier.

According to IG analyst Daniel Pingarron, “with today’s increase, the Ibex hits its best level of purchasing since January 2007, in the age of the bubble.”

According to Bolsamanía technical analyst José María Rodriguez, “the price is now at the doors of the resistance of between 10,600 and 10,630 points. Closing like this would be into a sixth consecutive week of gains. It is true that the “overpurchasing” is extreme but we have already said numerous times that it is not particularly useful. In the end the Ibex, without making much noise, is heading towards the long term objective of 11,500 that we pointed out in December.”

At the company level, Rodríguez pointed out Inditex and Repsol. “Both are exceeding important resistance points. What’s more, the textile company does not see resistances until the record high of 34.685 euros.”