• Catalan firms were worst hit with some down 5%
  • Puigdmeont says independence process will continue
  • Analysts point out ‘imprudent’ behaviour on both sides
cataluna-banderas-2

The session can be summed up in one word - Catalonia. The fallout from the referendum affected the Ibex 35 on Monday, when it fell 1.21% to 10,255 points. It was the biggest daily fall since August 11. Investors remained concerned after violence erupted in the north-eastern region on Sunday.

IBEX 35

  • 11.154,600
  • 1,56%

In fact, other European markets performed well in the face of the tension, with only the Ibex suffering pronounced losses. The worst performers on the day were two Catalan companies. Banco Sabadell fell 4.53% and Caixabank was down 4.43%. “Shame, “violence” “embarrassment” and “sadness”. These were just some of the words being used on Monday, in local and international media to evaluate what happened on Sunday.

The most important thing after everything that happened is that Carles Puigdemont signalled he will continue with the plans. He could declare independence for Catalonia this week, especially as no dialogue currently exists between the two sides.

Reports from experts are currently analysing the situation. According to CMC Markets, the independence movement may perhaps cause a problem for those in the European Union.

Returning to the market, it was a bad day for the banks. Bankia was down 3.33%, BBVA by 2.37%, while Santander fell 1.61% and Bankinter by 1.02%.

“As expected, the financial sector was the most affected. A worsening of the Catalan economy and Spanish economy would inevitably provoke an effect on the banks with a big presence in the area,” said Felipe López Gálvez from Self Bank.

The heavyweights also suffered. Telefonica was down 1.53% to 9.05 euros, while Inditex was down 1.3%. Iberdrola only fell 0.24%, while Repsol was hampered by oil prices to go down 0.58%. Tecnicas Reunidas was down 2.84%.

On the gains side, only seven stocks finished higher. ArcelorMittal was the best performer, thanks to a gain of 2.68%. The next best was IAG which was up 2%. The airline group reacted positively to the closure of Monarch Airlines.

Viscofan was up 1.16%, followed by ACS (+0.78%), while Siemens Gamesa was up 0.5%.

OTHER MARKETS

European indices closed in the black. The FTSE 100 was up 0.79%, the DAX 30 by 0.53% and the CAC 40 by 0.27%. Wall Street opened higher with the three main indices opening at record highs.

In the US, Donald Trump is about to announce Janet Yellen’s replacement as chair of the Federal Reserve. Meanwhile, a shooting in Las Vegas has left 50 dead and over 400 people injured at a country music festival.

TECHNICAL ANALYSIS

José María Rodríguez from Bolsamanía said despite significant losses, “we are in the same situation as a week ago, and it can be said that the Ibex is still moving in a narrow movement between 10,100 points and 10,400 as resistance.”

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