Santander and Caixabank prevent Ibex from closing higher
Spanish index falls 0.28% to 9,331 points
- Three banks the worst performing stocks in the Ibex
- Caixabank closes lower after Crieria Caixa sells 5% of the entity
- Banco Sabadell forecasts a profit of 800 million euros in 2017
The Ibex 35 was able to finish with gains on Tuesday, despite having spent the majority of the session moderately higher. The main entities holding the index back were Banco Santander and Caixabank. The market fell by 0.28% to 9,331 points. Once again, the worst performers on the day were the banks.
IBEX 35
11.656,600
-
0,39%44,90
- Max: 11.674,00
- Min: 11.520,90
- Volume: -
- MM 200 : 11.116,96
The wooden spoon for the day goes to Bankinter, which lost 2.19% to finish on 7.2 euros. It was followed by Santander, which dropped 1.99% to 5.1 euros. Caixabank was the next worst performer after the Catalan bank dropped 1.85% to 3.4 euros, a day after Criteria Caixa sold 5.32% of the firm.
Repsol also fell (1.44%) to 13.65 euros, pushed by the fall in oil prices to under $55. Telefonica, another heavyweight of the index, fell 0.26% to 8.87 euros.
The only bank that finished higher on Tuesday was Banco Sabadell, and led the gains in the Ibex 35 after rising 1.76% to 1.44 euros. The entity published its forecasts for 2017, and predicted that it will end the year with a profit of 800 million euros.
Viscofran, with a rise of 1.38% to 48.2 euros, and Red Electrica, with a rise of 1.23% to 16.86 euros, were the two next best performers. However, Inditex was the only blue chip to close with gains after the textile firm rose 1.05% to 30.8 euros.
In the general stock exchange, Euskaltel is in the news again after it was offered a merger with Telecable. Blackrock rated it as "short" after news of the possible merger.
BACK TO THE BANKS
In European markets there were mixed signals. The Cac 40 in France joined the Ibex in red after falling 0.49%. The Dax 30 in Germany rose 0.34% and the Ftse 100 gained 0.2%. Wall Street registered gains as well and the dollar regained momentum against the euro. The EU currency fell 0.57% and is now situated at $1.07.
Investors cannot forget about the global political situation either, specifically regarding Europe and US President Donald Trump. In the US, Trump continues his fight to implement his immigrant ban. On Monday the US justice department defended the executive order signed by Trump as a "legitimate exercise". The case is currently being appealed after a federal judge in Seattle temporarily suspended the ban on Friday.
The Central Bank of Australia maintained its interest rates at 1.5%, as was expected. Industrial production in Germany stayed at -3%, much below the expectations of 0.3%.
TECHNICAL ANALYSIS
Tuesday's session moved inside the narrow range of prices, marking a low of 9,304 and a high of 9,389. We closed clearly far from the highs of the day and the bridge to the support of 9,300 points. José María Rodríguez, Bolsamanía technical analyst, points out that the real support is 9,250 points, the "crest" of the higher impulse which corresponds to the highs of October.
"There have been many occasions now where the Ibex has approached the support zone which represents the lower of bases of the narrow movement, in which we have been in for the last few months."
