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43

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.

Financing

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

markets:

2014 Ranking

Billions of dollars

1

NYSE

178.37

2

Hong Kong Exchanges

120.68

3

London SE Group

71.73

4

Shenzhen SE

68.03

5

Shanghai SE

64.22

6

TMX Group

48.26

7

Australian SE

47.83

8

BME Spanish Exchanges

47.37

9

Euronext

46.61

10

Japan Exchange Group - Tokyo

26.25

11

NASDAQ OMX

22.80

12

Johannesburg SE

17.21

Source: WFE (World Federation of Exchanges).

Data at 23 January 2015

Capital Increases Listings

36,110

2014

30,683

5,427

1,292

32,102

30,810

2013

28,679

28,514

165

2012

37,739

18,901

18,838

2011

27,944

14,164

13,780

2010

Investment flows channelled through the stock market

(Millions of euros)

Source: FESE (Federation of European Stock Exchanges)