Daily IBEX 35 in 2013
Source: BME
10,500
10,250
10,000
9,750
9,500
9,250
9,000
8,750
8,500
8,250
8,000
7,750
7,500
7,250
-614 points
-7.52%
+2,363.50 points
+31.29%
31-12-2012
23-01-2013
14-02-2013
08-03-2013
03-04-2013
25-04-2013
20-05-2013
11-06-2013
03-07-2013
25-07-2013
16-08-2013
09-09-2013
01-10-2013
23-10-2013
14-11-2013
31-12-2013
The root cause of the growth in business volumes is the
shift witnessed in investor sentiment, particularly from
September on. This change was apparently driven by
the improved outlook for the Spanish economy, which
managed to emerge from recession, as technically
defined at least. Sentiment was further helped by the
culmination of bank restructuring and the reduction in
perceived sovereign credit risk. Spain’s corporates looked
to the equity markets for financing and this also boosted
equity trading volumes. Business volumes were also
buoyed by the lifting of the ban on short positions by
the securities market regulator, the CNMV, at the end of
January 2013. The volume of shares, ETFs and warrants
traded in 2013 by value amounted to €704.52 billion,
up almost one percentage point on 2012 volumes.
October was the strongest month, marking a record
number of monthly trades, at 6.4 million. Fourth-quarter
2013 growth in ETF trading volumes was spectacular.
This was fuelled largely by expansion and develop-
ment in ETFs over the IBEX 35® index, in which assets
under management surged 248%, with over €1 billion
of assets tracking the blue chip index for the first time.
The year was marked by renewed international investor
appetite for Spanish stocks: non-residents accounted for
nearly 80% of trading volumes. The smooth functioning
of the market model, the launch of new initiatives to
boost access to the market and the design of a higher
number of investment strategies based on listed assets
also combined to further improve the Spanish stock
exchange’s already high liquidity standards in 2013. As
a result of all the above factors, the number of trades
jumped 19.5% last year.
The IBEX 35®, the benchmark Spanish stock index, gained
21.2% in 2013, marking its best year since 2009. In parallel,
themarket capitalisation of the IBEXMedium& Small Cap®
indices rose 27% over year-end 2012, underscoring the
upside presented by mid-cap Spanish stocks. The average
bid-ask spread for the securities comprising the IBEX 35®
narrowed to 6.4 basis points in the fourth quarter, a signifi-
cant 4.8 basis point improvement over the average spread
in 4Q12 (11.2bp). This spread tightening implies sizeable
savings in brokerage costs due to the reduction in the
implied cost of the securities traded over BME’s platforms
and reflects growth in liquidity and a deeper order book.
36
Business Areas
Annual
Report 2013
BME
1...,26,27,28,29,30,31,32,33,34,35 37,38,39,40,41,42,43,44,45,46,...236