The Ibex distances itself from Europe rising 0.5% with a boost from Telefónica

The operator’s shares have listed green during the whole session after announcing a rise in net earnings of 32.2% in 2017, up to 3,132m euros. The company has referenced last year’s figures that are characterized by their “operative and financial growth and their reduction of debt, all of this in an acceleration context of the deployment of the new broadband”. The debt was reduced in 3,000m euros while the operator has confirmed the dividend for 2017 and has specified what their shareholders will pay in 2018.

DIA has been the second highest riser of the session (+2.9%) after having published its results today too, in a session charged with volatility, that has reached a 4%. The 2017 net result for DIA has decreased a 37.0% in 2017 down to 109.6m euros. The company has explained that this fall is due to the “greatest losses registered in the discontinued activities in China” during 2017. Nevertheless, the key to the accounts are in the reduction of margins. DIA’s CEO Ricardo Currás, has said that “2017 has been the first year that they have reached their objectives since they first started listing in the stocks in 2011”.

These two references with the announcement from Gas Natural, saying it’s selling a 20% (+1.83%) from Repsol (+0.75%) have been key for the index that is at the doors of the 9,900 points. In green also the rises in Enagás (+1.93%).

The lowest fallers have been ACS (-1.33) that keep falling while the CNMV keeps elongating the wait to give green light to the tender offer by Abertis. Also we should point out Caixabank’s losses (-96%) and Acerinox (-0.58%).

In the main board the key news has been Prisa, that closes with a fall of 4.21% after the Mexican Carlos Fernández and the Lebanese Joseph Oughourlian an the Israelí Zev Marynberg have become the new references in their shareholdings after the latest extension of capital.

WALL STREET AND EUROPE

After these movements, the Ibex 35 has taken a breather from the falls on Wednesday, in a week that is marked by ups and downs in worldwide stocks. In Europe we can only find red numbers up to the final minutes before the close, The CAC 40 and the DAX 30 have swung to finish with earnings.

The Fed proceedings showed special optimism on the economical scenario during their last meeting on the 30 and 31 January. “The majority of participants confirmed that a more solid perspective on the economic growth increased the possibility that a gradual rising trajectory of the rates is appropriate”, assures the document. The Fed expects to increase the rates three times for his exercise with the market pointing towards March as the first step of their politics.

On the macro front, this Thursday the data for the IFO survey in Germany, IFO has resulted in 126.3 below the 127 expected. The IFO business climate has placed itself at 115.4 versus the 117 estimated.

TECHNICAL ANALYSIS

“The Ibex recovers what it lost in the previous session and continues to stay close to the immediate resistance of 9,900 points”, sumarises José María Rodríguez, technical analyst in Bolsamanía. According to the analyst, to keep giving the rebound a bit of continuity or at least to go up to the next resistance (10,065 points), we will see if the index manages to close over the 9,900 points with strength.

Rodríguez points out the positive behaviour of Telefónica has boosted the index despite having pulled it down in many past occasions. “After the violent rising correlation this Thursday, Telefónica starts to confirm a new weekly rising minimum, it’s not a small feat”, he points out. “It looks as though something it’s starting to change after some time in the operator”, thinks the analyst.