Ibex down more than 2.5% this week and falls below 10,100 points
The index down 0.48% on Friday to 10,092 points
- Tecnicas Reunidas down 17% after lowering forecasts
- ArcelorMittal led the gains after its results
- UK will leave the EU on 29 March 2019
A bad week for the Ibex 35, which ended Friday with a loss of 0.48% to 10,092 points. The weekly fall is now 2.55% and it has lost the support level of 10,120 points towards lows of October. Political tension continues to affect the market, which is now down over 5% since 1 November.
IBEX 35
11.656,600
-
0,39%44,90
- Max: 11.674,00
- Min: 11.520,90
- Volume: -
- MM 200 : 11.125,61
Results season continued with force. Tecnicas Reunidas reported its profits had fallen 45%, but the most significant news was that it sounded a profit warning. It announced that it’s not going to hit the targets of this year or next, which made the company tank 17.1% to 23.3 euros.
Melia Hotels also sounded a profit warning, which made the hotel chain fall 0.51% to 10.74 euros. Melia reported that it will not hit its targets due to the crisis in Catalonia and pointed out its loss of reserves and a slight increase in the number of cancellations in Catalonia.
ArcelorMittal also reported, but its development in the exchange was much different. The steelmaker said its profits were 1.205m dollars, 77% more than the same period last year. It was the best stock on Friday with a rise of 3.5% to 25.16 euros.
Siemens Gamesa and Acciona accompanied Tecnicas Reunidas with losses of 3% and 2.39% respectively. Siemens saw its valuation reduced by JPMorgan to 11 euros from 11.50 euros.
On the gains side, Banco Sabadell was up 0.72% and Bankia advanced 0.46% and were the best performers after Arcelor. It’s worth pointing out that of the heavyweights of the Ibex, only Santander was able to finish in the black with a gain of 0.09%.
BREXIT SCHEDULED FOR MARCH 2019
European markets closed lower on Friday. The CAC 40 in France fell 0.0.54% and the DAX 30 by 0.46%. The FTSE 100 was down 0.66% after PM Theresa May announced that the separation from the EU would happen on 29 March 2019, almost three years after the referendum.
On the other side of the Atlantic, Wall Street nudged lower after the delay in tax reform in the US. Donald Trump’s tour of Asia continues as he appears in Vietnam at the APEC summit.
In forex, the euro rose 0.11% against the dollar and is now at $1.165. Oil was up 0.31% to $64.12 in the case of Brent, while West Texas was up 0.1% to $57.23.
TECHNICAL ANALYSIS
“Eight consecutive sessions of losses and that says it all,” said Bolsamanía analyst José María Rodríguez. “What’s true is that we can say openly we don’t have clear supports until 9,920 points and below the zone of 9,800 points, the base of the downward channel.”
