Show of strength for the Ibex: rising against the tide of Europe
The index regained its position after hitting low of 10,092 points
- Impressive performance from Iberdrola, Santander, BBVA and Telefonica
- In the end it closed 0.17% higher at 10,229.30 points
The Ibex 35 closed with gains of 0.17% at 10,229.30 points, after a morning in which it fell by 1% to 10,092 points. A huge sign of strength in the short term while the rest of the European markets faltered on Wednesday.
IBEX 35
11.622,700
-
-0,76%-89,10
- Max: 11.634,90
- Min: 11.605,10
- Volume: -
- MM 200 : 11.134,59
The heavyweights of the Ibex, namely Iberdrola (+1.06%), Telefónica (+0.77%), Santander (+0.42%), BBVA (+0.41%) are bailing out the market, also helped by Grifols (+2.67%), Gas Natural (+1.28%), Bankia (+1.12%) and Caixabank (+1.04%).
In Telefonica’s case, analysts from Macquarie raised the valuation of the telecoms company to 11.50 from 11 euros per share. Bankia meanwhile saw an increased valuation from JPMorgan to 1.15 euros from 0.90 euros.
On the negative side, the biggest faller on the day was IAG (-2.72%), followed by Merlin Properties (-1.85%), Cellnex (-1.75%) and Técnicas Reunidas (-1.29%). Dutch bank ING was one of the poorest performers after confirming it is being investigated for money laundering in the US and Holland.
Returning to Europe, London is the focus after a terrorist attack outside the UK parliament, in which one person has been confirmed dead and several others injured according to the latest reports. The FTSE 100 fell by 0.7%.
The words of Jeroen Dijsselbloem, president of the eurogroup of finance ministers, showed him dismissing claims for him to resign after several southern European countries called for his exit.
In France, centrist candidate Emmanuel Macron gained ground after obtaining the support of a socialist government minister. Meanwhile, the French interior minister Bruno Le Roux resigned after admitting to employing his children for various positions while they were only 15 and 16 years old.
We cannot forget about the United States. Wall Street is quoting up and down after registering its worst session of 2017 on Tuesday. The Nasdaq 100 in particular does not seem to be promising much in the short term after record highs this year.
TECHNICAL ANALYSIS
“A good end to the day allows us to see the Ibex 35 positive after a starting the day affected by losses on Wall Street. Technically the price is arriving at the tick at the beginning of the higher gap of 10,086 points. The low of this Thursday was 10,092.8 points and from there with the support of Telefonica and the two big banks it was allowed to finish higher,” said Bolsamanía technical analyst José María Rodríguez.
“In addition, once again the Ibex 35 performed better than its European neighbours, and there is little explanation apart from the financial sector and the rise of Telefonica,” the expert added.
