Ibex closes above 11,000 for first time since August 2015

The Ibex 35 and other European markets saw a session pushed higher by the banking sector, The Spanish index gained with strength and finished above 11,000 points at 11,012.9, a level not seen since August 2015 thanks to a rise of 1.62%. The PSI 20 in Portugal gained 1.76%, the CAC 40 in France by 1.35% and the DAX 30 in Germany by 0.96%. The FTSE 100 climbed 0.19%.

With regard to the stocks in the Ibex, there were big gains for Caixabank (3.86%), Banco Popular (3.77%) and Bankia (3.74%). There was also gains for Red Electrica, Banco Sabadell and Viscofan. The heavyweights alsom perfomred positively, with BBVA at the top of the list with a gain of 2.15%, Iberdrola 1.77%, Santander 1.56%, Inditex 1.32% and Telefonica 1.21%.

On the losses side, ArcelorMittal was the worst performer of the session with a fall of 1.36% followed by Tecnicas Reunidas with a loss of 0.66%, and Repsol with 0.62%. Specifically, the oil company reported its results on Thursday with an improved profit of 689 million euros in the first quarter. Liberbank also published its numbers, with a 16% lower proft than last year’s period.

Tomorrow will see the publication of Banco Popular’s results. The consensus estimates a net loss in the first quarter of 28 million euros, although perhaps the most interesting thing will be how board member Ignacio Sanchez-Asiain describes the next steps of the bank.

Among other data released on Thursday, Spanish unemployment fell in April to 129,281 with the biggest monthly reduction in its history. The Federal Reserve maintained rates as they were yesterday and defended its plans for two further rate rises this year.

IG analyst Daniel Pingarrón says that the session is “a new demonstration of the absolute strength of the market, in another upward session, which takes us to annual highs in Europe. Financial results are at the forefront of the strength. In Europe, close to 70% of companies are performing better than expected.”

Bolsamanía analyst José María Rodríguez pointed out that “the important thing is that prices continue at growing lows and highs and still take a little breather, at which times more money enters the market. If we head towards the true resistance (11,000 is a psychological barrier) we will find a small resistance at 11,150 points.”