Ibex reaches 10,700 with help of banks and despite Telefonica weakness
Index rises 0.51% to 10,702 points
- IAG was the best performer with all the banks finishing higher
- Telefonica fell more than 2%
- ECB pointed out that Draghi’s words were ‘misinterpreted’
The Ibex 35 regained its 10,700 point level in a session which was touch and go. In the end, the index closed with a rise of 0.51% and now finds itself at 10,702.7 points. In a day marked by a rally from the euro against the dollar, the European Central Bank clarified comments from its president Mario Draghi.
IBEX 35
11.435,700
-
-0,28%-31,60
- Max: 11.474,90
- Min: 11.399,10
- Volume: -
- MM 200 : 11.294,32
IAG was the best performer and led the advances with a gain of 4.66% to 7.18 euros. On Wednesday, Iberia reported that it will relaunch on 19 July the aero-bridge between Madrid and Barcelona along with an agreement with Vueling. In addition, the company is now 90 years old.
Bankia was close by. The bank was 4.03% higher, and continues its gains which started with the announcement of the merger with Banco Mare Nostrum. The day was a good one for the banks. Caixabank was 2.16%, while there were also gains for Santander (+1.94%), BBVA (+1.41%), Bankinter (+1.51%) and Sabadell (+1.47%).
On the gains side DIA must also be mentioned. The supermarket chain was 2.01% higher at 5.48 euros. The reaction was caused after it made public its agreement with Amazon.
However, one of the heavyweights dragged the index back on Wednesday. Telefonica fell 2.06% to 9.2 euros. Blackrock announced on Tuesday that it had cancelled a packet of 60 million shares in the company, valued at 564 million euros. Grifols and Endesa accompanied it with losses of more than 1%.
‘MISINTERPRETED’
The ECB said there was an ‘overreaction due to a ‘misinterpretation’ of Mario Draghi’s words in which he suggested a possible reduction of monetary stimulus at the end of the year. The words produced a rally of the euro against the dollar, hitting annual highs of $1.1369. At the end of markets the euro rose 0.19% to $1.1369.
In Europe, only the Spanish market finished higher. The FTSE 100 fell 0.56%, the DAX 30 dropped 0.18% and the CAC 40 by 0.03%. Wall Street had gains close to 1% after the ECB meeting. The Nasdaq was strengthened due to the technology stocks. Oil is once again higher, with Brent rising more than 1% and is now above $47, while West Texas advanced 0.8% and is at $44.60.
TECHNICAL ANALYSIS
José María Rodríguez, technical analyst at Bolsamanía, said “it was an interesting movement from the Ibex 35 at the half-way point of the week after falling below the support of 10,600 earlier in the day.” It can be said that the only real support is now further, at 10,380 points. The resistance lies at 10,900 points.
“That’s not to mention the upward movement of the banks from session lows,” he added. At the end of last week we said that the European banks were registering close to support levels. “It makes sense to keep betting for the deeper tendency.”
