IBEX 35 drops, due to concerns about Catalonia

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IBEX 35 drops, due to concerns about Catalonia

IBEX 35 drops due to Catalonia referendum

The Ibex 35 leaves behind the rally that had started this week’s session to locate into the negative territory, this is due to concerns about the situation in Catalonia, where there have been protests that have affected all transport in this region.

Abertis is one of the companies most affected by the convened protests, as they have stopped traffic since earlier in its two most important highways, for Abertis, it means a decline of 0.5% only during the beginning of the week, this may change as things go better or worse.

We can also see that the Catalan financial institution Banco de Sabadell, which adds a 0.6% after dropping 4.5% at the beginning of the day. Caixabank also fell 4.5% during the start of the day when it had gained a slight 0.5%.

What the experts say

Rente 4 in its stock market report explained that the equity of Spain could have a volatility in short term, but they hope that in the half term they return to normal as the current uncertainty dilutes little by little and does not affect the economic prospects in the near future.

Meanwhile, in the debt market, after climbing during the start of the day the maximum of four months, the risk premium would return to the area of the 120 basis points, this means about 2.5 basis points lower from the close of the previous day.

Catalona, Barcelona and the independence

Catalona, Barcelona and the independence

On the other hand, the euro stabilized against the dollar and recovers slightly by 0.2% to 1,1740 dollars. By the end of the day, the Ibex 35 was receding a 0.51%, placing this way at 10,203 points, while the large European values, the Eurofirst 300 index added a 0.04%.

After JP Morgan reduced the recommendation of Iberdrola and Red Eléctrica to neutral from above to ponder, the Ibex 35 was pressing above all to the energy sector. However, Iberdrola was one of the worst in value within the Ibex 35, with a cut of 1.95%, while Red Eléctrica had a 1.5% and the other companies in the sector such as Natural Gas or Enagas dropped between a 1.0 and a 1.3% respectively.

On the other hand, the banks were mixed, with a cut of 0.6% in Santander and an advance of 1.2% in Bankia. Other important sectors such as Inditex and Telefonica returned to be more cautious of funds for investments and fell a 0.9 and 0.7% respectively during the day.

However, in a completely opposite case, Siemens Gamesa boosted 3.1%. Outside of the Ibex 35, we have Telepizza climbing a 1.6% after saying that they keep some conversations with YUM! Brands that owns the chain of Pizza Hut are planning a possible alliance in the international markets.

It is expected that the less favored companies recover their status soon and disturbances in Catalonia are solved in time to recover the Ibex 35.

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