T.C.| Yesterday, the Spanish stock market closed at a twelve-month high, with the selective Ibex 35 above 8,800 points. The good results of some of the companies that have already presented their first quarter figures (Santander, Repsol, Naturgy, Indra, Viscofan…) pushed the index but did not prevent, as Morgan Stanley analysts explain, “Spain continues to have negative EPS (Earnings Per Share) and DPS (Dividends Per Share) revisions relative to the market… although it continues to trade at a 30% discount to the MSCI Europe”, when “the historical average is 20%, making it one of the most undervalued countries in the region”.
Spanish stock market
Most analysts believe the recovery in the stock prices of Spain’s four big Socimis will continue over the coming months. Between 70% and 80% of all brokerage houses have a buy recommendation. The fact these property investment vehicles have quite high returns and there is very little competition are amongst the positive factors.
José A. Santos (Patrivalor) | The value of the 60 Spanish companies listed on the stock market stood at 536.499 billion euros at end-July 2016, down 9.0% from end-2015, Patrivalor says.
Fernando Rodríguez | Telxius Telecom, Telefonica’s new telecommunications’ infrastructure subsidiary, will build and manage Marea, the subsea cable across the Atlantic that Facebook and Microsoft will run from Virginia Beach in Virginia to Bilbao in Spain. The announcement comes at exactly the right time as Telxius’ IPO is about to happen on 2nd June. Analysts consulted by The Corner believe this will go down well with investors. It will also be a companion for Cellnex Telecom, as another representative from this sector in the Spanish stock market.
Year 2015, with all the problems and possible scenarios, will mark a new record in terms of listed companies’ earnings, exceeding the 32 billion euros registered in 2014.
MADRID | July 3, 2015 | By Francisco López | Investors who bought a Spanish 10-year bond last January 1st are losing today 3.8% of their investment. Those who chose a financial product linked to lbex35 earned 6% in the same period, despite the recent fall caused by the Greek crisis.The evolution of the Spanish stock market has been better in the first half of the year and, according to experts, may further improve.