Presently, Spain’s Foreign Exchange is fully supported, and with “excedents”, declared Enrique Marazuela, Director of Investments in Banco Bilbao Vizcaya Argentaria and manager of an investment portfolio of over €17 billion.
According to the expert and director Marazuela, there are two factors that appear to back the Madrid-based exchange –reflecting its performance through the Ibex 35, the Spanish index- to become more diversified and liquid in the Spanish stock exchange: a favorable economic context and an increase in short-term and long-term rates of Pan European economy.
The Ibex 35, number one in Madrid stock exchange, took a huge leap of 18% in the past year, overcoming any gain obtained in the last 20 years and overrunning other stock markets in Western Europe. The expert Marazuela also foresees that the Ibex 35 will rise 5% more during 2017. Almost all specialists bet on having higher and ‘friendlier’ rates for 2018.
Mario Draghi had already foreseen, when he labeled the recovery of Pan European macro-economy as solid, how would Spanish economy behave in medium and short term.
According to analysts’ prognosis and private agencies reports, the Spanish economy will be the greatest grower of the seven greatest economies in the Eurozone, gaining at higher rates and strongly on the country’s bank stocks. These banking institutions are the kings of Madrid Index and stock exchange.
One of the reports expressed that savings and loan associations constitute a third of the exchange’s reference and work as a barometer for stock market in Spain, summing up to $801 billion in stock value.
Last month registered the highest drop in official statistical information institutions given the requests for unemployment benefits, whilst the tax income rose 11% from January to April.
However, the best conditions of the macro-economic fortress in Spain are yet to have a correlation with Ibex 35 performance, explained Edmund Shing, BNP Paribas analyst.
Shing also explainen, and recommended, that investors should take a long position on the reference futures with expiration in June 2017 and short-sale contracts for FTSE 1000.
Banks are the only companies with variable profit stock with a better performance so far this year in Spain stock exchange.