Banking and energy are positioned as the best values for the next twelve months. On the other hand, pharmacy and tourism recorded the worst selective results last year.
Energy and banking sectors posted record profit results in 2022 and after rising as the best values of the Ibex 35, they welcome 2023 with optimism. Between January and September, major banks and electricity companies made profits of up to 25,586 million, almost 30% more than in the same period of the year. last year. The increase in interest rates and the increase in raw material costs explain this. rally The rise reflected in the market capitalization and stock market valuation of these companies.
Caixabank emerged as the best value of the year with a revaluation of 52.11% and capitalization of TL 29,599 million. On the other hand, sectors related to pharmacy and tourism closed 2022 with the worst valuations of the stock market.
Behind these results are fears that the pandemic is over and families will travel less due to the recession and economic uncertainty. Tourism company IAG fell 18.4%, flight software Amadeus fell 18.59% and hotel company Meliá fell 23.73%.
When it comes to pharmaceutical companies, Grifols loses 36.18% and Rovi 51.14%. The worst part is reserved for swimming pool equipment, even though Fluidra buys it, it leaves 58.75% of its value to a brand that has suffered a lot from the price increase and whose products are now in more demand due to the lifting of curfews and restrictions. .
4 banks among the top 10 growing companies in terms of profitability in the index, caixabank, Bank sabadell, banker Y unicaja; two energetic reply Y Power Energy; new to selectivity Logisticianand three construction companies, hot water, indra Y Sacyr. Caixabank, Banco Sabadell and Repsol were crowned as the three highest values of the year with an increase of 52.11%, 48.85% and 42.23%, respectively.
In a year marked by macroeconomic uncertainty, interest rate hikes and the energy crisis stemming from the war in Ukraine, Energy stocks benefited from rising commodity prices.
As proof of this, Repsol’s capitalization in 2022 reaches 29,599 million euros, while Iberdrola’s is already close to 70,000 million. Acciona Energía gained almost 11% in financial year 2022 and reached a capitalization of 11,899 million.
“Repsol is committed to green hydrogen, which is highly valued by investors. It’s a good move,” summarizes the analyst from XTB brokerage firm Darío García.
But bank stocks were the best mover in 2022, and those expected to do well again in 2023. “Rise in interest rates and the end of zero-rate money bolsters traditional banking business”, says Dario Garcia. The European Central Bank has increased rates four times in 2022 in an effort to cool the inflationary rise, and the currency in the eurozone is now 2.5%.
ECB President Christine Lagarde announced that rates will continue to rise in 2023 after the last review of interest rates and talked about reducing rates to “restrictive” levels in order to control inflation. For this reason, the European banking sector has been one of the most repeated sectors in the next twelve-month market outlook presentations by both national and international companies.
“Our choices for 2023 are focused on the energy and finance sectors. First, because of the good profit moment, and second, because the central banks benefited from rate hikes,” said the analysts. In Norbolsa’s strategic report prepared in December 2022.
The bank was responsible for promoting the Spanish stock market as one of the best of 2022, surpassing only Lisbon and London. “It’s obviously been a bad year for almost all international exchanges., with significant declines in key US indicators. The declines in Europe have also been significant. Economist Alfredo Jiménez of the Spanish Institute of Analysts said the reason for Ibex’s more positive behavior is its high weight in the banking sector.
The bank’s capitalization is 8.900 million
Banks on the Spanish elective list achieved a capitalization of 8,900 million euros in 2022, until it recorded around 124,000 million euros at the close last Friday. It should be noted, however, that the banks with the greatest international risk are even worse off. Santander, which closed the year 2022 with an annual decline of 4.7% in the stock market, reduced its capital to approximately 3,900 million Euros, to 47,000 million Euros, like BBVA, which reduced its capital by 900 million Euros. up to 34,000 million euros. However, this business closed the stock market year with a revaluation of 7.3%.
Among the best bank stocks, Caixabank increased its capital by 10,100 million euros, approaching 30,000 million.After closing the stock year with a 52.1% increase, it became the Ibex 35 company with the highest increase in 2022.
Recording the second largest increase in the stock market after CaixaBank, Banco Sabadell cWith a 48.8% increase in its value, it increased its capital by 1,600 million Euros to 4,900 million Euros.. After adding 1 billion 500 million euros, Bankinter closed the year with a 38.9 percent price increase and reached a stock market value of 5 billion 600 million euros. Unicaja Banco, which joined Ibex 35 in the last period of the year, increased its value by 18.6% to 2 billion 700 million Euros.
Tourism and pharmaceutical values, most affected
Worst emerging values as a whole those related to tourism and pharmacy. “Although not the companies that lost the most, it was the drug that dropped the most value during the year. Rovi sold fewer products due to the end of the covid pandemic. They were very important values at the beginning of the year, but lost their relevance in the second half of the year,” said Darío García, XTB analyst, in the first half of the year. says.
Rovi labs lost up to 51.14% of their valuation in 2022 and its capitalization does not reach 2,000 million. Grifols leaves 36.18% of its value and has a capitalization of 6.636 million. In addition, we should mention the PharmaMar example, which was excluded from Ibex 35, as it did not meet the necessary requirements to be part of the list. The company failed to live up to the expectations it had promised the market about the effectiveness of one of its drugs against covid.
Values related to tourist activity also recorded poor results throughout the year. This is paradoxical in the year of tourism recovery, as in 2022 the first summer of two years took place without restrictions due to the pandemic. In the second half of 2022, Spaniards made 44.64 million trips, ten more than in the same period in 2021. It is close to the pre-pandemic figure recorded in 2019, when 50.47 million trips were made.
“The tourism sector has experienced a strong recovery this year. however, there are doubts that this situation cannot be repeated in 2023.. It’s also one of the industries most exposed to a recession, as expected in the first quarter of the year,” says Darío García.
Related news
It’s a similar situation to Inditex. The company founded by Amancio Ortega lost 12.9% of its value annually. Despite record results, maintaining growth and margins in a very difficult environment and having capital of 77,449 million. “It will continue to grow, but the market perceives this growth to be less. Also, the sale and exit of its entire business in Russia should be taken into account,” explains the XTB analyst.
In the tail wagon of the Ibex 35 is Fluidra, with the worst results in the entire index. Dedicated to swimming pool equipment, the company’s share drops to 58.75% and has a market cap of 2,790 million.. “This company was very affected by the price increase. The end of the epidemic also affected it, it received many orders to establish a plant, but now the demand for its product has decreased. And the business interruption in Russia. It has been operating since 2008, evaluated the results”, concludes García.