A global challenge
In early 2020 the covid-19 outbreak was seen as a mild flu by some, a respiratory illness that mainly troubled older and vulnerable people. Yet markets moved with unease. In the final weeks of February, the Spanish stock market shed thousands of points. On February 19, 2020, the Ibex 35 still lay far from the previous peak. By the last session before this edition, the Madrid index had inched up 0.44 percent to 9,278 points.
The assets tracked here assemble a picture of Ibex 35 firms navigating a global pandemic, a brutal European conflict, and a banking crisis over the three years covered. The values shown compare the main index levels for March 2, 2020 and April 3, 2023. Some names stood out with substantial gains, including ArcelorMittal up 18 percent, Solaria up 88.73 percent, and Acciona up 58.70 percent. Rising raw materials helped lift steel and energy groups. Solaria, which nearly doubled in price, was driven by tensions around renewable energy, solar panel self-consumption, and policy debate. Grifols, by contrast, fell sharply, down 70 percent, while IAG and Colonial each ended among the weaker performers, with declines around 49 percent.
Over the same period, the selector rose 4.76 percent, from 8,741 to 9,157. Inflation ran high, about 14 percent between February 2020 and February 2023, according to the National Institute of Statistics.
Levers and losers
The covid crisis forced households and economies to adapt. Many countries resorted to lockdowns to curb the virus, and Spain rolled back nonessential activity while designing measures to support workers. Government injections reached into the economy through 2022, with a visible impact on investment and consumption. Sectors tied to mobility, leisure, and tourism took heavy hits as restrictions persisted.
In the stock market, the travel and hospitality cluster faced steep losses. Among winners in this segment were Aena, Amadeus, IAG, and Meliá, though the performance varied. Aena posted a modest gain, while Amadeus and Meliá posted small losses and IAG led declines in the group. Industry insiders noted the business models in this space were heavily affected. Some analysts highlighted that airline earnings were expected to continue softening while debt rose during the pandemic. For example, IAG carried a high net debt at the close of 2022, with figures around 10.385 billion euros in that year’s final report.
Real estate also faced the pressure of higher rates and debt levels. Merlin Properties and Colonial saw significant declines, with analysts pointing to the sector’s vulnerability to rate moves and material costs as well as the greater burden of financing real estate assets. Experts also cited the impact of telework and profit allocations to shareholders as factors shaping performance in 2023.
Grifols and other pharmaceutical players
Grifols became the Ibex’s largest laggard in the selected period, with about a 70 percent drop. Governance questions and leadership changes added to the stock’s challenges, even as the core business remained attractive and defensive in nature. A leadership shift occurred around February when a board decision moved leadership to a new executive, with management citing health and personal reasons for the change. Analysts noted the company’s robust drug portfolio but warned that debt and governance issues needed addressing.
On the growth side, Rovi delivered strong gains — rising as much as 54 percent — driven by solid contributions in heparin production and a key role as a supplier to Moderna. The company’s innovation strategy also drew attention from investors. PharmaMar, which exited the Ibex 35 in late 2022, saw a modest decline as its covid drug program stalled amid market shifts. Other drugmakers and healthcare players followed a varied path through the pandemic timeframe.
Across the broader market, several well-known listed groups showed resilience or weakness depending on sector and leverage. Telecoms and utilities faced pressure, while some buyers benefited from higher interest rates and resilient demand. The overall landscape reflected shifts in how firms managed costs, debt, and cash flow as the economic reopening progressed.
Company-level dynamics showed that large groups with diversified activities could weather the storm better, while those with heavy exposure to debt and cyclic demand faced bigger headwinds. Industry voices noted that some firms increased shareholder remuneration as a way to balance investor expectations with tighter capital discipline. Market watchers emphasized that the energy and materials sectors gained from rising prices while others faced margin compression as input costs rose.
Strengthened sectors
Financials and energy were among the standout sectors since the health crisis began. Higher European rates supported banking profits and contributed to stronger market returns for several lenders. Industry insiders expressed cautious optimism about the retail banking outlook in both Spain and Europe, pointing to improving margins and a steady core business. CaixaBank emerged as one of the stronger performers, followed by BBVA, Bankinter, Banco Sabadell, Unicaja, and Banco Santander, all showing notable gains as rates supported lending activity and profitability. The broader banking sector faced volatility amid mid-crisis bank stress in the United States and Europe, including the collapse of Silicon Valley Bank and the public-backed rescue of Credit Suisse, which added a layer of uncertainty for many investors.
In energy and materials, the rebound in commodity prices benefited producers. Repsol, ArcelorMittal, and Acciona posted significant gains as prices for energy and steel rose. Other utilities followed suit with gains in natural gas and renewables. Analysts highlighted the ability of some firms to pass higher costs to customers, while others faced pressure on margins due to cost declines in certain markets. The renewables sector also attracted attention for its role in the energy transition and the push toward decarbonization and self-consumption initiatives.
Bottom-line performance
ArcelorMittal stood out for benefiting from decarbonization programs, including a 450 million euro grant to support green hydrogen initiatives in Asturias. The discussion around such deals remained a topic of transparency and governance. In a broader view, inflation rose about 14 percent over three years, while Ibex 35 appreciated less. The takeaway is that value creation across the index required a mix of sectoral strength, disciplined financial management, and strategic investments in growth areas. Some well-known names such as Ferrovial, Inditex, Aena, and ACS were cited as examples where a minimum threshold of value appreciation did not meet inflation, illustrating the challenge of sustaining long-term gains in a post-pandemic economy.