Ibex 35 condemned to ninth fall in eleven days by the banks
Spanish index loses 0.8% to finish on 9,304.8 points
- Banking sector was the worst performing sector
- Repsol and Telefonica closed with significant falls
- Brent crude maintains above crucial support of $53.80
The Ibex 35 finished another day with a fall, and has now racked up nine days in the red out of the last 11 sessions. Specifically the Spanish index fell 0.8% to 9,304.8 points. Banks were the most responsible for the fall, but Repsol and Telefonica also contributed.
IBEX 35
11.467,300
-
0,24%27,40
- Max: 11.489,20
- Min: 11.310,50
- Volume: -
- MM 200 : 11.289,95
Banco Sabadell was the worst performing stock on Monday with a fall of 2.63% to 1.3 euros. It was followed by Bankia, which fell 2.36% to 0.95 euros. The third worst performer was Indra, after falling 2.15% to 10.4 euros. Popular followed up with a 2.12% loss to 0.96 euros. The heavyweights of the index also had a bad day, with BBVA dropping 0.59% to 6 euros and Santander by 1.62% to 5 euros.
On Monday Spanish banks "recalculated" the effect of the ground clauses scheme. Caixabank will increase its provision of 110 million euros and Popular by 105 million. Bankia maintains its previous provision. Those consumers affected will be able to claim until Monday.
Regarding the earnings of Spanish banks, a general improvement is predicted in net profits of all the major banks, even though experts warn that the figures could be seen as spoiled by the ground clauses scandal. In addition, Popular is expected to post losses of 2.5 billion euros.
In the lower part of the table Mapfre must be pointed out after losing 0.62% to finish on 2.7 euros, after JP Morgan reduced its target price. Telefonica and Repsol also performed poorly. The telecoms firm fell 1.64% to 8.90 euros and the oil company 1.69% to 13.9 euros, owing to a fall in the price of Brent crude by 0.3%.
In the higher part of the table, Merlin was the best performer in the Ibex on Monday, with a rise of 1.1% to 10.1 euros. The second best stock was Melia Hoteles with a jump of 0.67% to 11.27 euros. Inditex was the only heavyweight to finish in positive with an increase of 0.21% to 31 euros.
In the general stock exchange, Urbas, Fersa Energías Renovables and Solaria Energía shot up more than 10% and led the gains.
OTHER MARKETS
The rest of the European stocks finished red. The Ftse 100 in London dropped 0.6%, a market that will be important on Tuesday as the Supreme Court announces its decision on Brexit. The Dax 30 in Germany fell 0.73% and the Cac 40 in France by 0.6%.
Meanwhile, oil marked one year since its 2016 lows of $27.10. At the moment a barrel of Brent is holding above the support of $53.80, even though it fell more than 0.3% after the announcement from the US that it would increase production.
In the Forex market, the euro keeps rising against the dollar. The euro is now worth 1.0741 "greenbacks", a rise of 0.32%.
TECHNICAL ANALYSIS
"We have begun the week on the wrong foot," said José María Rodríguez, technical analyst at Bolsamanía. As can be seen from the graphic, the price is perforating the base of the narrow movement of recent weeks, lowering near the bottom base of between 9,200 and 9,250 points.
As such, he pointed out that "we have to be very careful not to go lower than 9,200, because it could be the precursor to a movement which could take the index to the December levels of between 8,960 and 8,890."
