The Ibex begins in 2021 with the hope of recovering the ground lost in the year of the pandemica, which rocked it to become the most weighted European stock index in 2020 with a fall of more than 15%. Now, with the hope that the vaccination campaign will be carried out in the proposed times, the Spanish market faces a year in which experts believe that if the virus is defeated, it can recover at high speed supported by cyclical values such as those tourism, those that fell the most last year due to global movement restrictions and those with the greatest potential to rise once movement returns to normal and tourism reactivates.
But until the good news arrives, the domestic components that will continue to be attractive to investors are mostly concentrated in defensive sectors. Thus, the foreseeable renewables will continue to lead the increases in Spanish components, as happened last year with Iberdrola and Actuate as two of the greatest exponents. Since IG Markets They add that they will be even more boosted by the arrival of the Democratic party to power in the United States, which is expected to decarbonize energy, as well as a strong investment in infrastructure. Therefore, both Spanish companies, which also have a large presence in the North American country, could benefit from this fact. Following the line of infrastructures, ACS it could be a winning component throughout the year also driven by its business in the US.
Market experts at IG Markets also focus on the steelmaker Acerinox and in the steel giant ArcelorMittal (which already at the end of the year was promoted around 25% in the Spanish selective) for which it predicts a positive economic cycle for different reasons; For the first, it is estimated that, given the prospects for global economic improvement, the demand for steel and other industrial products will skyrocket, while for ArcelorMittal, highlights its future commitment to the manufacture of low carbon steel, included in its industrial plan that aims to reach eight million tons of production in 2025 and that will also have public support.
Returning to safety values, investors will also focus on the food sector, one of the most reluctant to suffer in phases of economic crisis. So from IG they point out that Viscofan it will be another of the values to take into account with the incentive “of its profitability and its low debt”.
For its part, surprises are not ruled out in the banking sector, which already last week with the confirmation of the Democratic victory in the United States Senate flew in the markets in the heat of Wall Street, after months of collapse. Thus, it is expected that with the investments planned by the new Joe Biden government – in addition to new fiscal stimuli – the US public debt will skyrocket and this will have an effect on bond yields and raise interest rates. So the banking business would start to earn revenue again. In this sense, we will have to be attentive in Spain to BBVA and Santander that can begin their climb after a disastrous year with the double-digit fall of the two entities in the stock market.
Also special attention to Telephone, which this week has regained its pulse with the sale of the Telxius towers to American Tower Corporation for 7.7 billion. A sale that helps you to unburden your high debt. From Investing they also point out that taking into account their latest movements “we could witness an increase in the value of the subsidiaries in the United Kingdom and in Brazil”, so they predict a positive 2021 for the Spanish telecom company.
All in all, for the Ibex companies to regain the 10,000-point path reached just before the pandemic, Javier Molina, an analyst at eToro, assures that the key will be to attract again foreign capital that, until recently, represented 50% of the market. On the other hand, he also explains that the health crisis must take a firmer path in its resolution, since the selective Spanish “has a high dependence on the social economy and, as long as we do not see the light, perspectives and reality will not be fully adjusted.”