Banking and energy stand out as the best values for the coming year, while the pharmacy and tourism sectors lag behind in performance based on last year’s selective results.
Energy and banking were standout performers in 2022, rising to the top of the Ibex 35 and entering 2023 with optimism. From January through September, major banks and electricity companies reported profits reaching up to 25,586 million, nearly 30% higher than the same period in the prior year. Higher interest rates and rising raw material costs helped fuel this rally, which in turn boosted market capitalization and overall stock market valuations for these groups.
Caixabank emerged as the top performer of the year, posting a 52.11% valuation gain and a capitalization of 29,599 million. Meanwhile, sectors tied to pharmacy and tourism finished 2022 with the lowest stock-market valuations.
Behind these shifts were concerns that the pandemic had eased and that travel demand might soften due to recession risks and ongoing economic uncertainty. Tourism players saw declines: IAG fell 18.4%, Amadeus slipped 18.59%, and Meliá dropped 23.73%.
In the pharmaceutical sphere, Grifols plunged 36.18% and Rovi fell 51.14%. The decline in pool equipment was especially pronounced, with Fluidra losing 58.75% of its value as price pressures endured and demand for its products shifted with the easing of curfews and restrictions.
Four banks ranked among the top ten gainers in profitability within the index: Caixabank, Banco Sabadell, Bankinter, and Unicaja; two energy names, Repsol and Iberdrola; and several construction and engineering firms. Caixabank, Banco Sabadell, and Repsol were the standout performers with gains of 52.11%, 48.85%, and 42.23% respectively.
In a year marked by macroeconomic uncertainty, rising rates and the energy crisis fueled by geopolitical tensions, energy stocks benefited from higher commodity prices. Repsol’s market capitalization reached 29,599 million euros in 2022, while Iberdrola’s approached 70,000 million. Acciona Energía gained nearly 11% in 2022, reaching a capitalization of 11,899 million. Industry observers noted that Repsol’s emphasis on green hydrogen appealed to investors, a move viewed positively by market participants (XTB analyst commentary).
Bank stocks led the way in 2022 and were expected to perform well again in 2023. Analysts cited rate hikes and the unwind of ultra-easy monetary policy as support for traditional banking activity. The European Central Bank tightened rates four times in 2022 to curb inflation, with the euro area currency now showing signs of strength. The central bank’s president signaled further rate increases in 2023, while discussing a potential path to more restrictive levels to control inflation. This backdrop has kept the European banking sector in focus within market outlooks from both national and international firms.
Analysts noted that 2023 outlooks centered on energy and finance due to strong earnings momentum and the favorable tilt created by rate increases. Norbolsa’s December 2022 strategic report highlighted these sectors as top picks for the near term, pointing to robust profits and favorable central-bank dynamics as key drivers.
The year also featured a broad stock-market rally for the banking sector in Spain, contrasting with weaker performances on international exchanges. Economists suggested that the Ibex 35’s relatively strong performance stemmed from its heavy banking exposure, even as European equities faced headwinds. Observers attributed this trend to the sector’s resilience and ongoing integration with favorable monetary conditions.
In examining stock movements, Spanish banks showed notable capitalization growth in 2022. Santander and BBVA posted declines in some metrics, yet the sector overall closed the year with meaningful gains. Caixabank led the cohort with substantial capitalization growth, followed by Banco Sabadell and Bankinter, while Unicaja joined Ibex 35 late in the year with a solid rise in value.
Tourism and pharmaceutical equities faced substantial headwinds. A mix of slower demand and reduced reliance on certain therapeutic products weighed on valuation. Rovi’s 2022 performance was framed by lower product sales in the wake of pandemic-related shifts, while Grifols and PharmaMar faced challenges tied to clinical and regulatory developments. For the tourism segment, a year of rebound expectations collided with concerns about future demand, given the possibility of renewed economic headwinds in 2023. Analysts noted that recovery was substantial but uneven, with travel volumes still susceptible to macroeconomic shifts (industry commentary).
Inditex also experienced a challenging year, reflecting a broader cautious mood despite record results and a strong balance sheet. Market expectations regarding growth and international exposure remained tempered by geopolitical and regional market dynamics. An analyst noted that the company’s ongoing strategic adjustments, including geographic diversification, would influence future performance.
As for Fluidra, the pool-equipment specialist, the stock was among the weakest in Ibex 35, pressured by price movements and the slow pace of demand as markets adjusted post-pandemic. The firm faced interruptions in some operations abroad, underscoring how external pressures weighed on performance across the sector.