The Spanish economy has undergone notable transformations over the past couple of decades. According to the World Health Organization, Spain remains one of the standout European economies, ranking among the top in the euro area in several measures. It attracts a large volume of international visitors, consistently confirming its status as a leading tourist hub. Life expectancy in the country has kept rising, reflecting improvements in health and living standards. The services sector has grown to represent a substantial share of economic activity, yet manufacturing, construction, and agriculture still contribute meaningful, if smaller, slices of the national output. In the early years of the century, services already dominated the economy, while industry and other sectors began to adjust to new patterns of demand and globalization. National accounting figures also show that construction and the primary sector have fluctuated in their relative contributions to GDP over time, illustrating the evolving structure of Spain’s economy.
How has the stock market evolved in Spain? Today, the market capitalization of the ten largest companies listed on the Ibex 35 stands at nearly 468 billion euros, while the top ten listed firms collectively carry a value close to 248 billion euros. Over roughly 24 years, the revaluation of the Ibex 35’s leading names has been substantial, reflecting both global capital flows and domestic fiscal and regulatory changes. This broad shift in the composition of the index mirrors how investors recalibrate risk and opportunity across sectors with different growth profiles.
Telefónica, once the crown jewel of the Ibex 35, carried a capital value well over 80 billion euros at the turn of the century. It has since retrenched to around 20.5 billion and slipped to a lower position within the overall ranking, illustrating how telecoms have faced tougher competitive pressure and margin compression in recent years. A parallel trajectory is seen in Repsol, which started with a far higher market value at the turn of the century but has come down from its earlier peak as the energy sector rebalances in response to shifting demand and regulatory frameworks. These movements illustrate the dynamic nature of capital allocation among Spain’s blue-chip names and the ongoing adjustments within the Ibex 35.
Other familiar names have also reshaped the composition of the index. Endesa, once a leading value in the market, has remained a significant player but now sits further down the list as valuations landscape shifts and cross-sector competition intensifies. This evolution demonstrates the Ibex 35’s positive trajectory over the last couple of decades, where adaptation and selective reinvestment have altered the mix of top performers and the overall risk-and-reward profile of the index.
As the economy evolved, some institutions that once stood at the core of Spain’s financial landscape restructured or migrated into new configurations. Argentaria, once a public bank, merged with BBVA under privatization and consolidation trends that marked the late 1990s and early 2000s. Banco Popular, after its challenges, was acquired by Banco Santander, marking a consolidation in the banking sector. Unión Fenosa’s integration into Gas Natural, now Naturgy, in 2008 for a substantial sum signaled a pivot toward integrated energy and infrastructure holdings. These shifts underscore how strategic mergers and acquisitions have reshaped corporate ownership and the competitive landscape in Spain.
How does Ibex 35 look today? Inditex, which went public in the early 1990s but expanded its presence in 2021, now accounts for a substantial share of the index’s total capitalization, underscoring the enduring strength of fashion and retail as a driver of Spanish corporate value. Iberdrola remains one of the largest publicly traded companies by market value, though its size has evolved since the early 2000s as the broader energy sector diversified and decarbonization pressures rose. The Ibex 35’s composition shows a shift away from traditional banking and energy emphasis toward a more diversified mix, reflecting broader macroeconomic changes and sector-specific dynamics such as tourism, technology, and consumer services gaining traction in the market framework.
Even with these shifts, banks and large energy players continue to hold prominent positions within the index, while newer entrants from tourism-related technology and other growth areas contribute to the broadened footprint of the market. The top five names still reflect half of the index’s total capitalization, illustrating how a handful of heavyweight firms continue to influence market direction even as the economy evolves. This balance between established incumbents and rising newer players helps explain the Ibex 35’s resilience and its capacity to reflect broader economic trends and investor sentiment.
Tourism and technology have emerged as notable growth drivers in the Spanish market. Amadeus, a technology provider for travel, and Cellnex, with its extensive telecom infrastructure, have become important contributors to market dynamics. Amadeus began trading on the stock exchange in 2014, while Cellnex followed in 2015, marking a newer wave of company formation that complements the traditional manufacturing and energy sectors. These firms illustrate how Spain’s economy has broadened beyond its historical strengths, embracing digital platforms and communications infrastructure as core assets for growth.
The role of the state in major listed companies has also shifted markedly over the long run. From the privatization campaigns of Endesa, Argentaria, and Telefónica in the 1990s to more recent movements, state involvement in large public-facing enterprises has varied. In some cases, partial government stakes remain or strategic holdings are redefined, signaling a nuanced approach to public ownership and market discipline that aligns with broader economic policies and fiscal realities of the day.