Spanish stock market shakes after elections
Spain’s stock market lost 3% and dropped to a total of 9,400 points before the clock had even struck 9 a.m. this morning.
But that’s hardly surprising after the uncertainty generated from the result of the general elections celebrated on Sunday, with the formation of a government completely up in the air.
Investors today have opted to sell rather than buy due to the fear of what a fragmented future Parliament might entail.
During the first session, FCC (construction) took the biggest hit, dropping 5.75%, and was followed by Endesa (-4.37%), Aena (-4.31%), Sacyr (-4.06%), Santander (-3.59%), Popular (-3.46%), Ferrovial (-3.24%), Caixabank (-3.23%) and Iberdrola (-3.21%).
Santander’s shares opened up in negative figures after announcing that it will buy Portuguese bank Banif for 150 million euro, and similarly Merlin Properties, who have only just begun to operate on the Spanish stock market, also started the session with a drop of 1.88%.
It’s not even 24 hours since the election results were announced, so it is understandable that the market destabilizes slightly.
Elsewhere, Spain’s risk premium began the day at 125 points, nine more than on Friday when it closed. It is clear that the market is reflecting the uncertainty felt by everyone with an interest in politics and business in Spain.
Over the next two months or so, much of the gains generated since the middle of 2012 could be lost, and experts have intimated that we could see a fall of around 1,000 points to around 8,000 or 8,200.