Ibex 35 is very close to completion The highest annual revaluation in the last 14 years. The Spanish selector achieved an increase of 22.88% with a total capitalization of 651.381 million euros. It was recorded as 29.84% in 2009 and 31.79% in 2006.
The reason for these increases? The most important of these is the slowdown in inflation due to the economic slowdown and interest rate increases in Europe, as in the rest of the world stock markets, and central banks’ announcements that they will stop cost increases. from money The Federal Reserve went further than the European Central Bank (ECB) and Promised three interest rate cuts in 2024.
“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 the dividend with shares – by distributing dividends – with secret capital increases, they had huge debts, the financial sector was full of bricks… Now all 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 major economic momentThey are experiencing a huge influx of dollars, thanks to the closure of American factories in China and the installation in Mexico… Brazil is running a surplus, having a great moment in terms of current account balance, and has been lowering interest rates ever since. It controlled inflation well,” explains Lizán.
The best-known index of the Madrid Stock Exchange has reached many milestones, such as surpassing 10,000 points in 2023 or the historical highs of Ferrovial or Inditex. “2024 will undoubtedly come with corrections”. February may be a month where these can occur due to seasonality, pure profit taking, or pre-earnings season adjustments, which is not expected to do well in the US. “Despite these emerging, the indices offer comfortable cushions to maintain the good underlying momentum and achieve new positive milestones next year,” commented Eduardo Faus, technical analyst at Renta 4.
These 2023 Spanish selectivity increases have names, surnames and prominent heroes: Rovi Laboratories (70.3%), Inditex (63.15%), ACS (59%) and BBVA (56.7%) increased by more than 50%. Aena (44.65%) and Santander Bank (41.75%) revalued over 40%.
Rovi’s rise comes after the stock market falls 51% in 2022 and is explained by its ability to exceed its own sales and profit forecasts and those of the market. Madrid laboratory has an agreement with the American pharmaceutical company since 2020 Moderna to market and manufacture messenger RNA products All over the world except the USA and Canada. The company, controlled by the López-Belmonte family, is working on the development of vaccines aimed at replacing extended-release injectable drugs, i.e., daily administered medication against diseases such as schizophrenia or breast cancer.
Inditex’s rise in the stock market is attributed to its record year in profits and sales. Actually, The group founded by Amancio Ortega already has 5,000 million After the profit was announced in the first nine months of the year, the annual profit was 4 billion 102 million euros. ACS’ growth is also driven by business results; In the first nine months of the year, thanks to construction work and the contribution of Abertis, it earned up to 576 million, 20% more than in the same period of the previous year. dealership
Banco Santander and BBVA are the banks that expect the most rise in Ibex 35 this year, thanks to the recovery of interest margin due to the increase in interest rates and the good times experienced by the main economies of Brazil and Mexico.
Acciona, hero of the waterfall
On the other hand, only two stocks are down more than 20%, and both are managed by the same family: Entrecanales. Renewable Acciona Energía fell by 21.5% and Acciona by 21%. In the ‘red light’ category, this is followed by Unicaja with a decrease of 9 percent, Repsol with a decrease of 4.25 percent and the former Red Eléctrica Redeia with a decrease of 2 percent.
In recent months, Acciona Energía has been collecting negative valuations from investment banks such as: Morgan Stanley, Berenberg and JP Morgan It warned about the decline in the reference price of regulated energy production, low prices in Chile and the halt of investments in solar energy projects in the USA and Spain. Expansion plans have also slowed down due to the increase in financing costs.
Its parent company, Acciona, is developing in parallel at Ibex 35, because It has an 82.6% share in renewable energy. and represents 70% of its ebitda. Despite this, it received important infrastructure projects such as the construction and operation of a desalination plant in Casablanca (Morocco) for 800 million dollars or the construction of a highway in Australia for 420 million.
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Unicaja is the Ibex 35 bank with the most exposure to the mortgage market. Home mortgage firm in decline for nine monthsHowever, October is the least significant (-29.6%) compared to that recorded in September. In the tenth month of the year, the average mortgage amount established for houses decreased by 5.3 percent annually to 140 thousand 564 euros, while the loaned capital decreased by 26.4 percent and reached approximately 4 billion 487 million euros.
Repsol’s disruptions are attributed to annual declines in oil prices. The Brent barrel, which is the reference in Europe, lost 8.3 percent of its value, and the West Texas barrel in the USA lost 8.35 percent.