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Analysts raise the potential of the Ibex 35 after the best January since 2001

Date: March 29, 2024 Time: 10:40:45

The Ibex 35 squeezes the bullish trend of the market. With a few hours left to close the first month of the year, the selective registers a rise of 9.9%, slightly above the Euro Stoxx 50 (+9.6%), which leads it to be crowned the second index with the most rises among the main indices of the Old Continent, only behind the Italian FTSE Mib (+11%). This rebound that some analysts classify as surprising is not trivial. To find a similar rise during the first month of the year, you have to go back two decades, to January 2001, when it reaped a gain of 11%. It remains even above the 9.6% that was recorded during the same month of 2011.

Apart from the slight falls this Monday, at the beginning of the key week for Western central banks, in the projections for 2023 most of the analysis houses point to a recovery of the Ibex 35 after the general falls in equities in 2022. What they did not foresee was a double-digit ‘acceleration’ in just four weeks. “A more complicated start to the year was expected,” the director of Investments at ATL Capital, Ignacio Cantos, admits to La Información.

The ‘rally’ maintained for four consecutive weeks has led analysts to raise the target price of this index. If a fortnight ago they pointed to a revaluation to the level of 10,125 points, on January 30 the ‘Bloomberg’ consensus sees the possibility of it reaching the psychological level of 10,227 points. Although the difference is barely 1%, the key is that its progressive upward modification in recent days opens the door to more revisions from now on. At the moment, 46% recommend buying, compared to 3% who recommend selling.

The Ibex 35 comes from closing last December at 8,229 points, so if this rebound is confirmed, an advance of almost 25% would be noted. It should be remembered that it has been the European index that has best withstood the blow of the war in Ukraine. The financial profile of the Spanish parquet, with a representation of around a third, became a shield during the era of market bleeding and made it possible to cushion the panic unleashed among investors due to the awakening of monetary policy in para tie .

Except for surprises in the tone that Jerome Powell in the United States and Christine Lagarde in the euro zone will use in their speech this week, financial institutions are acting as a catalyst, especially Banco Sabadell. The firm led by César González Bueno accumulates a revaluation of more than 31% and is positioned as the third value that rises the most since last January 2. The announcement that he will raise his ‘pay-out’ (the percentage of profits that he will distribute among shareholders) to 50% has reinforced his position in recent days.

It is followed in this journey by Unicaja Banco (+20%) in fourth place and, with a little more distance behind BBVA (+14.2%), Banco Santander (+14%), as well as Bankinter (+3.7%), that also support the Ibex. However, this time, the momentum has come from the tourist companies, which have taken advantage of the ‘dog strategy’ to gain momentum. These are IAG (+38%), Meliá (+31.7%), Amadeus (+19%) and Aena (+18%), which were punished by investors during 2022. Only Redeia and Iberdrola appear as ‘ red lanterns’, with a modest decline of 0.25% and 1.33%, respectively.

Naturgy and Rovi, two sides of the same coin

Rovi, Cellnex Telecom or Grifols, which led the stock market crashes, with the potential to rise 55%, 38% and 36%, respectively. The ‘top 5’ of the classification are completed by Telefónica (+27.9%) and Acerinox (+25.4%),

The other side of the Ibex 35 is represented by Naturgy which, according to consensus, is trading more than 10% above its target price, driven, among other reasons, by the attractiveness of its dividend, according to Renta 4. A situation that also It threatens others such as Inditex, Meliá, Solaria or Enagás which, after the latest upturn, exhausted their run and remained between the fine line of being able to improve their rise somewhat or move to the list of ‘expensive shares’.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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