Ibex 35 was around 10,000 points for three days. very close to completion the famous V-turn, meaning a recovery to pre-pandemic levels It reached this level on February 17, 2020, when it reached 10,022.2 points. Its previous highs date back to May 11, 2018, when it reached 10,271.4 points, but it is still a long way from the historical highs achieved on November 8, 2007, when it reached 15,945 points. It still needs to increase by 59.5%.
It has gained 10.5% so far in November; This represents the biggest monthly increase since November 2020, when it rose 25.2% after Pfizer announced its covid-19 vaccine had reached 90% effectiveness. The selector is revaluing this month as in the previous ten months.
10,000 points is more than a round number, it is a psychological number.For Ibex 35. The famous V-turn has already been completed by other indices, such as the Euro Stoxx 50, which lists the 50 largest companies in the euro zone, the German Dax, the French Cac 40 or the Euro Stoxx 50, which lists the three largest companies. Wall stock market indices: Street, S&P 500, Nasdaq and Dow Jones.
These 10,000 points come from banks, construction companies, Inditex and Indra. Ibex 35 is up 21% so far this year. BBVA is up 60.6% in 2023, Laboratorios Rovi is up 57.3%, Inditex is up 55.4%, Banco Sabadell is up 50.6%, ACS is up 44.65% and Banco Santander is up 40.4%. Inditex, the company with the most capital in the most well-known index of the Madrid Stock Exchange, is at the highest levels in history, as is Ferrovial.
“This means a return to pre-pandemic levels, and the leading index of global stock markets is about to start outperforming the American S&P 500. This has not happened since August 2004. The next level it can reach is 10,115 points. IG broker analyst Sergio Ávila “If this upward trend continues, it could reach 11,250 points,” he explains.
“HE mountain goat 35 Recovered positions vertically from October lowsIt has recorded gains for four consecutive weeks and is approaching 10,000 points with a revaluation of more than 12 percent,” adds CMC Markets analyst Luis Francisco Ruiz.
“For me, the reference that should be taken into account above 10,000 points will be the pre-pandemic high levels of 10,115 points. The structure of the mountain goat at the graphical level is positive, It left behind the downward trend that accompanied it from 2008 to 2022However, considering the vertical rise it has experienced in recent months, I think it may start to improve. From here we need to see how the economy develops, the control of the deficit and debt, and whether there is tension in the real estate market…”, says Pablo Gil, former director of technical analysis at Banco Santander.
IBEX reaches 10,000 points
“The Ibex 35 has reversed its situation after years of bearish trend since the 2007 highs. At that time, companies diluted their shareholders because they paid dividends with shares – by distributing dividends – with secret capital increases, they had huge debts, the financial sector was full of bricks… Now all of this is turning upside down, they have plans to buy back shares, depreciate treasury shares Reto Magnum Sicav at Quadriga Asset Managers In this way, you pay shareholders through fewer shares in circulation, emphasizes José Lizán, manager.
“Another burden for Ibex 35 in recent years Latin American currenciesand especially the Mexican peso and the Brazilian real. Now Mexico and Brazil are experiencing a big economic moment, they are experiencing a huge influx of dollars thanks to the closure of American factories in China and their installation to Mexico… Brazil has a surplus, it is currently enjoying a big moment It maintains the balance level on the current account and keeps inflation it lowers interest rates because it controls it well,” explains Lizán.
These maximums are reached thanks to Moderate course of inflation in the USA (3.2%) and the Euro Zone (2.9%) This led analysts and investors to think that this would lead central banks to put the brakes on interest rate hikes. It is not even unlikely that the Federal Reserve and the European Central Bank (ECB) will reduce the cost of money in the third quarter of 2024.
“What moves stock markets around the world are the decisions of the Federal Reserve and the European Central Bank (ECB), with interest rates expected to remain at current levels at least until July 2024. From here on, investors predict that central banks will reduce interest rates to avoid accelerating the economic cooling. Interest rate increases are not expected in the short term and this benefits the stock markets.” comments Víctor Alvargonzález, founder of independent financial advisory firm Nextep Finance.
All-time highs with dividends
“Considering the dividends distributed by the Ibex 35, its dividend Ibex is at the highest levels in history, reaching 26,755 points, and is on a free rise. In fact, Inditex and Ferrovial are at historical peaks and ACS is close to reaching them,” says Apta Negocios analyst Roberto Moro.
Dividends have traditionally been one of the most interesting topics in the Spanish stock market. Between the profitability of these payments (5%) and the share repurchase programs implemented by companies listed in the Spanish index (1.3%), they add up to 6.3% per year, slightly less than twice the interest paid. ten-year Spanish bond: 3.6%.
The leader in dividend yield of Ibex 35 is Enagás with 10.5%This is followed by Caixabank with a 10 percent share, Banco Sabadell with 8.5 percent and Unicaja, BBVA and Mapfre with 8.3 percent.
Wall Street is also looking higher
Will the increases continue? “Wall Street indexes are 3.5% off their all-time highs, the German Dax is 3% and the French Cac 40 is 4%. The most normal thing is for stock market indices to fall It is due to the strong increases they have experienced since October,” says Moro.
“We last saw the 10,000 points in February 2020, just before the pandemic, almost four years ago, and it was visited occasionally. To see the 10,000 points again, we would have to go back to May 2018, and these were also a specific visit. On this occasion, the valuation coefficients it supports the upward trend and so do the business results. Profit expected to increase next year. On the downside, there are political and economic uncertainties due to the economic slowdown in Europe,” says Ruiz.