Investors see CaixaBank and Sabadell’s move as a “wake-up call” for Catalonia

Despite the ongoing uncertainty in the wake of last Sunday’s referendum in Catalonia, investors returned to the Spanish markets yesterday, buying up both equities and bonds, Link Securities say.

The analysts highlight that the Treasury was able to place nearly 5 billion euros in long-term debt, in response to strong investor demand.

One of the key drivers of this renewed investor interest is the decision by several top Catalan companies, including the two big banks Sabadell and CaixaBank, to move their headquarters from their home base to other cities in Spain. Link Securities explains:

“Investors interpreted this (the move by the Sabadell and CaixaBank) as a “wake-up call” for the secessionists, who had been selling the idea that after independence, Catalonia would remain in the EU and the Eurozone. It’s clear that the banks, who need the ECB for liquidity, don’t hold the same view.”

Link Securities also flag that after a writ of amparo was presented by the Socialist Party of Catalonia, the Constitutional Court suspended the Catalan parliament’s plenary session next Monday. That’s when the secessionists were expected to declare the unilateral independence of Catalonia.

Several international news agencies have been reporting on the apparent differences in criteria which are beginning to emerge amongst the secessionists, the analysts add.

“The most moderate are in favour of negotiating with the central government, while the more radical members, the left-wing extremists with the CUP at the head, are pushing for an immediate declaration of independence.



About the Author

Juan José Fernandez-Figares
Head of Research at Link Securities, Juan José Fernández-Figares has been analysing financial markets and companies from a wide range of sectors for over two decades. He also advises clients on their investments. For the last ten years Fernandez-Figares has been developing models based on algorithms, oriented towards stock picking for portfolio and fund management.