Annual Report 2014 BME
The IBEX 35 index rose for the second year running,
by nearly 4% in 2014 and by 75% since the recession
low thirty months ago. These profitability data have
been considerably improved as a result of including
the dividends in the index. Volatility remains low
and capitalisation is approximately €1.1 trillion. The
companies listed in Spain increased their value by
€324 billion since mid-2012.
In general, the Spanish stock market activity in 2014
was characterised by stable share prices in a context
of increased trading and financing, with low volatility.
There were two differentiated market price trends
during the year. The indices soared in the first half
but then started falling in the summer due mainly to
the doubts about the economic and political situation
worldwide. The IBEX 35 index rose by 12.82% in the first
half and fell slightly below the 2013 year-end in mid-Oc-
tober, closing 2014 with an increase of nearly 4%.
The shares, which had soared in 2013, extended
the increase in the first fortnight of January but then
corrected suddenly in the second fortnight and closed
the first quarter with an accumulated increase of 4.3%.
The instability in some emerging economies and the
uncertainty due to the political tensions between
Russia and Ukraine heavily influenced the first quarter.
Nevertheless, as in the second half of 2013, the
first quarter of 2014 was characterised by domestic
equities markets dominated by the intense share
buying, boosted by high market liquidity, investors’
appetite for risk and the improved outlook for the
Spanish economy. These positive factors continued
in the second quarter, when the IBEX 35 reached its
year peak: 11,187.80 points on 19 June, exceeding its
previous high of over 11,000 points on 17 February
2011. The second quarter closedwith a 5.6% increase.
In the third quarter, the markets had a differing
performance due mainly to several events that had
opposing effects. As a result of the euro zone’s weak
macroeconomic data and the geopolitical instability,
share prices fell; conversely, because of the European
Central Bank’s further quantitative easing measures
and the improved Spanish domestic economic indi-
cators, the Spanish credit spread narrowed, thus
boosting the share prices. Therefore, there were
sudden increases and decreases, with a predomi-
nance of the latter. The IBEX 35 index fell 5% in the
period to nearly 10,280 points, after reaching the year
low of 9,669 points on 16 October.
The Spanish stock exchange returned to a note-
worthy position in the international scene due to the
new financing flow towards companies, with €36.11
billion in 2014, maintaining a leading position in
Europe. The public offerings were gradually reacti-
vated in Spain and throughout the world. The volume
and number of capital increases reached very high
levels once again. The financing options for SMEs also
increased and improved.
Investment flows channelled by the stock
Billions of dollars
Hong Kong Exchanges
London SE Group
BME Spanish Exchanges
Japan Exchange Group - Tokyo
Source: WFE (World Federation of Exchanges).
Data at 23 January 2015
Capital Increases Listings
Investment flows channelled through the stock market
(Millions of euros)
Source: FESE (Federation of European Stock Exchanges)