Spanish IBEX 35 index surges to 14,800 in its fifth trading session
The Spanish Stock Exchange concluded a strong week on Friday, with the IBEX 35 benchmark reaching a level unseen since 2008. The index rose by 0.91%, closing at 14,824 - a gain of 134 points.
The positive market sentiment was driven by a combination of factors. Solid corporate earnings from major listed companies, such as Repsol, played a significant role. Repsol reported robust net income, increased dividends, and strategic asset management, boosting investor confidence in the energy sector and broader market.
The IBEX 35's performance was also bolstered by positive spillover from global market rallies, particularly from the U.S., where indices like the S&P 500 and Nasdaq set record highs. Better-than-expected inflation data and expectations of future interest rate cuts by the Federal Reserve supported this growth.
European markets overall performed strongly, with Spain leading the way (+6.52% rise in previous quarters). Improving economic conditions and trade agreements involving the EU contributed to this growth, reducing uncertainties and bolstering investor sentiment.
Investment interest in sectors that dominate the IBEX 35, such as finance, energy, telecommunications, and consumer goods, also increased. These sectors are seen as having promising growth prospects for 2024-2025.
The yield on the Spanish 10-year bond was trading at 3.257% at the close of the European session, higher than Thursday's close of 3.201%. The risk premium fell to 56.7 basis points at the close of the session. The euro remained practically stable against the dollar, trading at a rate of $1.1658 per euro.
Notable movers in the Spanish market included Unicaja Banco, which rose by 2.77%, and BBVA, which saw a 2.87% increase. However, Indra experienced a 2.2% drop, and ArcelorMittal rose by 3.04%.
The London Stock Exchange fell by 0.06% on Friday, while the Frankfurt Stock Exchange declined by 0.12%. The Paris Stock Exchange, on the other hand, rose by 0.44%. The oil market also saw growth, with West Texas Intermediate (WTI) reaching $64.22, up 0.55%, and the Brent barrel trading at $66.91, up 0.69%.
The Milan Stock Exchange also rose by 0.56% on Friday. This strong performance across European markets reflects a convergence of strong corporate fundamentals, optimistic economic outlooks, and supportive global market conditions, creating a favorable environment for equity investment in leading companies.
The IBEX 35 has gained 4.94% this week and 27.86% year-to-date, indicating a sustained upward trend. This rise to a level unseen since 2008 reflects confidence in Spain’s economy, which is closely tied to European economic trends.
Investors show increased interest in sectors that dominate the IBEX 35, especially finance, energy, telecommunications, and consumer goods, as these sectors are seen as having promising growth prospects for 2024-2025. The average yield on the Spanish 10-year bond, which was trading at 3.257% at the close of the European session, indicates a positive sentiment in the finance sector.
