Ibex regains 9,800 points after big push from Telefonica

The Ibex 35 closed with moderate gains on Monday of 0.06% as it reached a new annual high above 9,800 points (9,804.10), while the rest of the European markets registered losses more than 0.5%. A push from Telefonica and Iberdrola sent the index to 2017 highs.

On the other hand, the Dax 30 in Germany fell 0.7% after being hampered by Deutsche Bank, which bombed 7% after it confirmed it would carry out a capital increase of eight billion euros.

The German bank, which has a current value of 25 billion euros, has been struggling in recent months with the profitability of the business. For Goldman Sachs the action is "sufficient and necessary" in order to close the debate about its solvency. Goldman and others remain hooked on the capital.

Despite that the weakest player on the day was DIA, which fell 1.97%. The supermarket chain was the most pressurised on Monday after reporting its results.

Other stocks of note were Telefonica, which regained 10 euros after JPMorgan elevated its valuation to 12.20 euros per share. Gamesa was the highest riser on Monday with gains of 1.19% after a positive note from Citi. IAG gained 0.46% after it announced plans for a share buyback of 500 million euros.

In the UK, Standard Life and Aberdeen Asset Management agreed to a merger which will create a giant in the sector which will look after assets of 760 billion euros.

MARKETS WAIT ON YELLEN

In the macro realm, the day had several references. It included a confidence indicator for investor Sentix, which was raised 17.4 points to 20.7 points. On Wall Street, the main indices quoted losses and the Dow Jones fell below 21,000. The US market is now waiting on the actions of the Federal Reserve, as it is expected to raise interest rates when Janet Yellen and the rest of the bank's members meet this month.

This week however, it will be another monetary authority which takes the spotlight as the European Central Bank meets on Thursday, but no major changes are expected.

Its a risky date for bonds, according to Bankinter analysts, now that the Frankurt institution "will update its macro estimations and it seems highly probable that it will give a 1.8% estimation for inflation for 2017."

TECHNICAL ANALYSIS

The Ibex rose 3.6% last week to mark its highest point since December 2015. The index "is coming close to 10,000 points, the real and psychological resistance. The best performance of the index comes in relation to other European markets and is currently owed to the impressive showings of Telefonica, since it broke through the resistance of 9.40 euros. "In fact it has risen 15% this year already," asserted Bolsamanía technical analyst José María Rodríguez.

"The only thing missing at this stage is BBVA, which is clearly behind in recent months compared with most of the financial sector. We will continue to wait on what it does in the coming days and whether it can achieve the resistance of 6.6 euros."