Thanksgiving cold turkey
22 November 2007, Madrid - The Spanish stock market yesterday joined other major bourses worldwide in closing sharply lower as investors swore off stocks as a bad habit amid renewed credit-crunch fears and concerns of a global economic slowdown.
22 November 2007
Madrid - The Spanish stock market yesterday joined other major bourses worldwide in closing sharply lower as investors swore off stocks as a bad habit amid renewed credit-crunch fears and concerns of a global economic slowdown.
The European markets opened lower after strong losses overnight in the Asian bourses. The euro hit a new all-time high against the dollar, which weighed on European exporters, while soaring oil prices also dampened sentiment.
Opening losses on Wall Street as investors opted to close positions on the eve of the Thanksgiving holiday effectively sealed the fate of the European bourses for the day.
The Ibex 35 shed 2.14 percent to 15,364.50 points after trading in a range of 15,294-15,568.
The Madrid general index dropped 2.47 percent to 1,657.02 points. Open-market deals in the continuous market amounted to about €4.8 billion. In the rest of Europe, Frankfurt shed 1.47 percent, Paris dropped 2.28 percent, while London was down 2.12 percent.
The only stock in the Ibex 35 to escape the blood-letting was leading fashion retailer Inditex, which added 0.37 percent to 49.50 after Morgan Stanley raised its target price for the stock by 20 percent to €60, and reiterated its "overweight" recommendation. The biggest loser among the blue chips was the hotel group NH, which shed 6.16 percent. Iberdrola lost 2.23 percent.
The electricity supplier said late Tuesday the indicative price range of its initial public offer of a 20-percent stake in renewable-energy unit Renovables at been set at
€5.3 to €7.0, valuing the company at up to €29.6 billion.
Among the banks, Santander was off 2.17 percent, while BBVA lost 2.43 percent. Telecoms giant Telefónica, which has a weighting of 20 percent in the Ibex 35, gave up 2.36 percent.
[Copyright EL PAÍS, SL. 2007]
Subject: Spanish news