Lisbon Stock Exchange closes in fall. Banking penalizes IBEX

Banking was penalized in the Iberian Peninsula. This the day after the merger of CaixaBank with Bankia was approved and after the ECB announced that it will allow eurozone banks to become more indebted due to “exceptional circumstances”.

The PSI-20 closed at 4.252,43 points this Friday, falling 0,80% compared to the close of the previous day.

The fall of the day fell to NOS, which closed down -5,21% to 3,13 euros. However, the decline in Galp's share price was also not casual. The oil company fell 3,59% to 8,71 euros.

Mota-Engil's shares fell -3,20% to 1,270 euros; Navigator slid -2,20% to 2,31 euros; Ibersol fell -2,21% to 5,30 euros and BCP fell -1,95% to 0,0907 euros, dragged by the fall of bank bonds in the Spanish index, a day after CaixaBank's merger with Bankia had been approved.

On the rise, EDP Renováveis ​​stood out, which rose + 3,17% to 14,34 euros. Yesterday EDP announced that it had issued 850 million euros in green bonds seven years ago.

Novabase increased + 1,40% to 3,610 euros. Corticeira Amorim also stood out by increasing + 1,10% to 11,02 euros.

Bank punishes IBEX on negative day of European stock exchanges

European stock markets closed down this Friday. “The fact that it is Quadruple Witching Day, that is, the day of simultaneous maturity of stock index futures, stock futures, index options and stock options justified a higher than usual volume (Euro Stoxx 50 turnover more than doubled the average of the last 20 sessions) ”, stresses Ramiro Loureiro, market analyst at Millennium investment banking.

Also the contradictory information regarding the timing of the arrival of the Covid-19 vaccine “ended up leaving investors more indecisive in their decision-making”, adds the same analyst.

The EuroStoxx 50 fell 0,99% to 3.283,7 points. The losses affected the whole of Europe. The FTSE 100 fell 0,71% to 6.007 points; the CAC lost 1,22% to 4.978,2 points; the DAX fell 0,70% to 13.116,2 points; the FTSE MIB fell 1,09% to 19.524,9 points and IBEX led the losses by dropping 2,21% to 6.929,8 points.

“Banca reacted with indifference to the merger environment in Spain, where CaixaBank confirmed an offer on Bankia to create the largest bank in the neighboring country, not least because in a way the operation would already be incorporated in the markets”, says the BCP analyst .

The sector turned out to be the one that retreated the most, even on the day that notes emerged that the ECB is preparing to lift the ban on the distribution of dividends in Banking early next year, a decision supported by several members of the supervisory board. "This was, moreover, the regulator's initial indication," said the analyst.

The banking slump comes a day after the European Central Bank (ECB) announces that it will allow eurozone banks to become more indebted due to Covid-19's “exceptional circumstances due to the pandemic”.
The European institution said it would allow banks that it directly supervises, on a temporary basis until 27 June 2021, to exclude certain exposures to the central bank from the leverage ratio, so that entities have more space to borrow more because the ECB it will not demand more capital for that.

The ECB's banking supervision took this step after the ECB's board confirmed that there are “exceptional circumstances due to the new coronavirus (covid-19) pandemic”.

CaixaBank launches offer to Bankia and values ​​it at around 3,8 billion

The Spanish bank has reached an agreement with its competitor, which is controlled by the state, to pay 0,6845 CaixaBank shares for each of the Bankia held, which estimates the OPA target at around 3,8 billion euros.

The offer to buy CaixaBank from Bankia was one of the themes of the session. IBEX was among the most affected by the fall of Inditex (-2,40%) and Santander (-3,78%) to be the most penalizing.

The German Covestro (+ 5%) was excited by rumors that it may be the target of acquisition.

At the macroeconomic level, retail sales in the United Kingdom stand out with performance above expectations. Excluding fuels, there was a 4,3% year-on-year increase in August (estimated at 4,2%). Total sales rose 2,8% (2,7% expected).

It is also worth mentioning the news that German producer prices slow down. The IPP fell 1,2% in August (a drop of 1,4% was expected), compared to 1,7% in July.

The euro gains 0,06% to $ 1,1855.

London Brent drops slightly (-0,07%) to $ 43,27 a barrel.

In the public debt market, Germany has 10-year interest rates rising 0,52 basis points to -0,49%. Portugal witnesses an increase in interest rates of 1,56 basis points to 0,30% and Spain of +1,95 basis points to 0,28%.


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