Big Blue funk

15th January 2008, Comments 0 comments

The Spanish stock market remained slumped in a cowering depression yesterday.

15 January 2008

MADRID - The Spanish stock market remained slumped in a cowering depression yesterday. Not even a strong start to the session in Wall Street in the wake of an encouraging earnings report by IBM could lift its blues. As a result the blue-chip Ibex 35 closed lower for the fourth trading day in a row, but managed to hold onto support at 14,400 points.

The domestic market opened with slight losses after Wall Street closed lower on the Friday and moved in and out of positive territory before deciding to head south. Big Blue's earnings announcement, however, allowed the Ibex 35 to close well above its lows for the day, while other major European bourses posted gains.

The Ibex 35 closed down 0.18 percent at 14,443.90 after trading in a range of 14,343-14,540 points. The Madrid general index lost 0.17 percent to 1,555.11 points. Open-market deals in the continuous market came to about EUR 4.2 billion.

In the rest of Europe, Frankfurt added 0.18 percent, Paris was up 0.60 percent, while London put on 0.22 percent.

Banks remained under pressure on concerns the credit crunch may have a bigger impact than initially thought. The two big lenders Santander and BBVA are also exposed to Latin America, which tends to suffer from a slowdown in the US economy. Santander lost 1.39 percent and BBVA 0.26 percent. Telefónica, which is also heavily exposed to Latin America lost 0.27 percent.

The Spanish stock exchange operator BME added 4.92 percent after a Nasdaq official described it as an interesting group with an attractive strategy. Property company Colonial, which has been under heavy pressure of late, added 5.51 percent on expectations surrounding the sale of a stake in SFL.

[Copyright EL PAÍS / Adrián Soto 2008]

Subject: Spanish news

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