It was still week D, marked, as usual, by monetary policy. Finally, the new rate cut by the European Central Bank (ECB) made it possible to reach what the Ibex 35 had been trying to overcome for months: its annual highs. The 11,444 points that the Spanish index reached in June have so far functioned as an annual ceiling for index increases, but, thanks to the optimism generated by the new ECB decision and also by the Inditex accounts, it was finally exceeded and, at mid-session, The Ibex 35 is trying to close the week at the April 2015 highs above 11,500 points.
This Thursday, the European organization has once again proceeded to a new reduction of the deposit facility rate by 25 basis points and placed it at 3.5%. The ECB has also confirmed, with this new decision, the beginning of a cycle of budget cuts that will last until set rates at 2% by July next yearachieving discounts of up to 150 basis points during these months. All this, even though inflation has not reached the 2% target, but it is hoped that with the fall in energy prices, the CPI will continue its contraction.
This new ECB cut brings investors back to European stocks, which, after last week’s declines, are generally positive on the markets of the Old Continent. But among all, the Ibex 35 stands out, which is heading towards the end the week with gains close to 3% and increases its revaluation in the year to almost 14%. The Spanish team once again confirms its leadership in 2024 in Europe and measures its strength directly with heavyweights such as the S&P 500 or the Nasdaq 100, the indices that continue to record the strongest increases in 2024. The rest of the continent’s indices recorded weekly increases of around 2%, with the EuroStoxx 50 being the next to have progressed the most since Monday and once again reaching the annual increase of 7%.
Now, the Ibex 35 is back on its way to 12,000 points. In fact, experts are more than positive and suggest that in the coming months, The Spanish index could trade at 12,895 points (the highest valuation of the index since 2011), to which it still has a potential increase of 12%, which contrasts with the trajectories of other selectives such as the EuroStoxx or the Cac which are at 17%, but the first gains half of this amount. the ibex in the year and the second is even negative in the year.
On a technical level, this journey of the Ibex 35 towards new peaks for the year allows Joan Cabrero, Ecotrader advisor, to identify a key support of the index at 11,138 pointswhich correspond to the minima established the previous week. Despite the optimism of the stock market this week, Cabrero is cautious and issues a warning: “if this support were to disappear, I would be in favor of reducing positions in the Spanish stock market, because in this case it is likely that we will see a drop towards 10,870 or 10,735 points, that is where I suggest waiting before increasing positions in the Spanish stock market.
Undoubtedly, Inditex’s accounts were another key factor in the rise of the Ibex 35 this week. And even though the textile giant’s half-year results were slightly below analysts’ forecasts, investors made a positive assessment and Galician company ends week at historic highsexceeding for the first time the level of 50 euros per share and with up to 12 analysis banks seeing even more growth for its shares. The company confirms once again its price as the largest company in the Spanish market in terms of capitalization, exceeding 156 billion euros.
Thus, during Inditex’s big week, the company accumulates stock market gains of almost 8% (only 6% since Wednesday, the date of the publication of its results), which is its best weekly balance sheet since mid-March. However, it is not the leader of the Ibex 35. Grifols exceeds its gains of the last five days, with an increase of more than 8% that allows it to reduce its annual decline to less than 35% and drops Solaria as the most bearish of the index during the year. Colonial also stands out since Monday and its price has risen by almost 7%.
The truth is that it has been a more than positive week for the values of the Ibex 35, since Only four of the 35 finished in the red, highlighting especially the falls of Rovi and Puigby almost 8% and 5% respectively. The Catalan company high end beauty suffers bump this week after presenting its first listed accounts the previous Friday in which it reflected a contraction in profit (partly due to expenses derived from the IPO) and the fall in experts’ valuations.
