Going against the trend
23 November 2007, Madrid - The Spanish stock market yesterday went against the tide of the rest of the major European bourses, which recovered from the losses they booked in the previous session.
23 November 2007
Madrid - The Spanish stock market yesterday went against the tide of the rest of the major European bourses, which recovered from the losses they booked in the previous session.
With Wall Street closed due to the Thanksgiving holiday, the European bourses were left to their own devices. While the likes of Frankfurt and Paris seized on the opportunity to regain some ground, investors in the Spanish bourse opted for a correction, which left the blue-chip Ibex 35 in the red, mainly as a result of falls in heavyweight stocks such as Telefónica.
The Ibex 35 shed 0.31 percent to 15,317.10 points after trading in a range of 15,272-15,456 points. The Madrid general index dropped 0.30 percent to 1,657.86 points. Turnover in the continuous market amounted to about €4.6 billion, including open-market deals worth some €3.4 billion.
The feature of what was an otherwise anodyne session was Iberia. The airline led blue chips lower with a loss of 4.96 percent after Caja Madrid reinforced its position in its shareholder structure, and said it would not sell out to any formal takeover bid. That put a damper on the schemes of investors who had taken positions in the stock in hopes of a quick profit.
In the rest of Europe, Frankfurt added 0.58 percent, Paris gained 0.65 percent, while London outperformed with a gain of 1.39 percent. Telefónica, which has a weighting of 20 percent in the Ibex 35, gave up 1.34 percent. The telecoms giant is still 27 percent to the good for the year to date. Other prominent components of the benchmark index were also lower. Santander was off 0.76 percent, while BBVA lost 0.12 percent.
Inditex added to yesterday's gains with a further rise of 0.34 after Morgan Stanley raised its target price for the stock.
[Copyright EL PAÍS, SL./ Adrián Soto 2007]
Subject: Spanish news