The IBEX 35 in Spain has potential for growth, according to a recent radio interview given by a fund selector at Mapfre.
The Madrid-based insurance company put out a statement this week, saying that opportunities were beginning to emerge through macro data suggesting that local assets, such as Spanish equities, could “[…] be set to surprise on the upside relative to assets in other regions, such as the US and Asia”.
Ismael Garcia Puente, fund selector at Mapfre, told Radio Intereconomía that one factor which could boost selection would be an increase in ECB rates in the medium term. However, García Puente encouraged not taking it for granted and noted that it could be truncated by as the rise in the cases of covid-19, the tensions with Belarus and Russia, and the rise in the prices of raw materials.
In a press release, Mapfre said: “The positive outlook for the IBEX is reflected in the European stock markets, of which Mapfre Asset Management has increased the weight in its portfolio, since their recovery has lagged behind those of the US and Asia. So it is logical that the positive trend clearly shown in places such as Frankfurt and Paris should continue. This idea is reinforced by the fact that the latest business results have generally been positive in the Old Continent.”
Despite Mapfre’s confidence, the IBEX 35 dropped 0.26% on Wednesday to 8,765.8, although it has since risen to 8,832. Recent weeks have also not been kind to the index, which began a prolonged drop from 15 November when it reached 9,095.7. It bottomed out at 8,753.2 on 19 November and has recovered somewhat.
The sustainability of this recovery is still under question, given the index’s fluctuations over the last six months.
