The selective relies on the operator after KKR’s takeover of TIM and seeks 8,800 points after suffering its worst week of the year
The Spanish Stock Market seeks to overcome the hit suffered in recent days, which led the Ibex-35 to lose 3.6% in its worst week of the year. The selective rose 0.5% to 8,790 points at the beginning of the week in the middle, with Wall Street closed on Thursday for the celebration of Thanksgiving Day and on Friday (Black Friday) open only in the middle of the session.
Maximum prominence for the telecommunications sector in Europe, with Telefónica leading the increases in the Ibex-35 with a rebound of 2% after the US fund KKR presented an offer of 10,800 million euros -which implies a premium of the 45% – to take over TIM (Telecom Italia), an operation that has every chance of succeeding despite the opposition that some shareholders of the operator such as Vivendi may present.
According to Link Securities analysts, the operation may lead many investors to increase positions in the telecommunications sector “while waiting for more similar corporate movements to take place.”
Another of the main protagonists of the day will be BBVA, with a rebound of more than 1.5% in its price after the sharp falls last week that even the announcement of an improvement in its dividend policy did not stop.
The bank’s decision to bet on Turkey with the purchase of all its subsidiary Garanti has not pleased investors at all. And analysts also seem very divided on value. On Monday, Oddo raised his recommendation on the entity to ‘overweight’ from ‘neutral’, while Exane BNP Paribas cut his advice from ‘overweight’ to ‘neutral’.
In the recommendation section, Oddo has also started hedging on REE, with an ‘underweight’ advice.
Investors will also be very aware of the evolution of the pandemic in Europe, in a day in which Austria has begun the confinement of its entire population amid strong protests, also in other countries where, as in Spain, it is still discussing the possibility of recovering some restrictions.
A perspective that last week sowed panic over tourist values, given the impact that these types of decisions could have on these companies, with the fear that the delicate pace of economic recovery could be slowed.
That fear has also caused oil prices to relax from the high levels at which they were trading just a few days ago. A barrel of Brent, a benchmark in Europe, is already below $ 80, while the American West Texas is trading at $ 76.
In this scenario, the dollar continues its climb with one euro down and the cross between the two currencies already at 1.12 dollars.