Pedro del Pozo, director of financial investments at Mutualidad, a non-profit insurance entity, comments on the Ibex 35, "whose sectoral structure, dominated by banking and leading companies, contributes to consolidating the attractive position of the Spanish stock market in the panorama investment".
Despite the falls of the Ibex in the first week of April, amid a general panorama of corrections in the stock markets, "the perception towards the Spanish Stock Market remains in positive terms, especially considering its recent favorable performance," indicates Pedro from the well. This optimism is based "on the notable recovery and dynamism that the market has shown in the short term."
The sectoral structure of the Spanish stock market benchmark index, largely dominated by the banking sector along with a few companies from other sectors, plays a crucial role in this context, the expert continues. "The current interest rate environment, which is characterized by being relatively higher, but in the process of moderation, especially benefits the banking sector, favoring its business margins without significantly increasing bad debts. This factor, combined with the exceptional performance of leading companies such as Inditex and Repsol—the latter recently driven by the circumstances of the oil market—contribute to consolidating the attractive position of the Spanish stock market in the investment panorama."
As for the reasons behind the positive behavior of both the Stock Market and the Spanish economy as a whole, Del Pozo identifies various factors. "The Spanish economy has demonstrated particular strength in key sectors such as tourism, which has recorded record figures, and in the competitiveness of its exports, contributing to a current account surplus sustained for 11 years. This achievement, considered almost implausible in decades past, reflects a more balanced economy and less dependent on external financing, capable of financing itself to a large extent.
Additionally, it points out that "Spain has distinguished itself by being one of the first countries to achieve a significant reduction in the inflation rate, an indicator of macroeconomic solidity and efficient economic management. These elements, together, place the economy and the Spanish stock market in a favorable position, not only in the European context but also in the global context, marking a turning point towards a trajectory of growth and stability".
