Cellnex shares have under performed the sector by c.16% since mid -Oct 2016, mainly due to higher government bond yields and the market’s rotation out of yield stocks which, in the case of TowerCos, may have been exacerbated by their dependence on M&A.
The Spanish banking sector’s stock market rally has been suddenly cut short. The listed banks’ index had risen over 45% since the minimum levels of June 2016 until the first week of January. But since then, it is seeing a correction. Two matters of concern for investors are the impact of the floor clauses ruling on the banks profit and loss account, as well as the problems of the Italian banks.
Last year, IAG transported 100.67 million passengers (+14%) and improved its occupancy rate to 81.6%, (+0.2%), thanks to a good performance from its routes to Europe and North America.
Técnicas Reunidas has been awarded by Saudi Aramco the contract for the turnkey project Clean Fuels within the Ras Tanura refinery on the east coast of country. No financial details of the contract have been revealed, but it means a good start to the year for the company and strengthens its position in the Middle East market.
UBS | Based on our latest conversations with investors, the following three questions emerged on Iberdrola: Could we see EPS growth upgrades following the strategic update on Feb-2017? Could renewables growth plans in the US be at risk? And, Is the company likely to pursue inorganic growth as suggested by recent press articles?
Carax- Alphavalue | 2016 is no great vintage for Spanish group Ferrovial (Add, France) which spent the year sailing into headwinds including the bankruptcy of one of its US toll roads in March, Brexit in June (36% of sales are generated in the UK) and the widening of South European sovereign spreads from October.
The Green party lawmakers in the European parliament have accused the world’s biggest clothing retailer Inditex of avoiding paying at least 585 million euros in taxes between 2011 and 2014. According its report ‘Tax Shopping: Exploring Zara’s Tax Avoidance Business’, the fact that Inditex diverted bonus payments to the Netherlands has cost Spain some 218 million euros in uncollected tax revenues, Germany 25 million, Italy 57 million and France 78 million, amongst others.
They say that governing is all about choosing (between what is bad and what is worse) and this government is once again facing a difficult decision: whether to lower AENA’s airport tariffs, thus benefiting Spain’s tourism industry which generates the most jobs, or do their own thing and make money. I say this because, obviously, the best way of making money is not to lower the tariffs AENA charges the airlines.
Someone else has fallen victim to the market: the plunge in Banco Popular’s shares has led to Ángel Ron being replaced as the bank’s chairman. But apart from the stock price’s ups and downs, Popular’s new chairman Emilio Saracho, former global vicepresident of JP Morgan, has a difficult task ahead.
Indra has launched a full bid for Tecnocom at 4,25 euros per share in cash and stock. Analysts see the move as a further step in Indra’s restructuring and is in line with its strategy for gaining critical mass.