It’s been a troubling time for political stability in Spain with Catalonia’s push for independence dividing the country. The Ibex 35 have been volatile over the period, with last Friday’s declared independence by Catalonia pushing Spanish stocks lower.
Now, with the Spanish Government in Madrid taking control of the situation following suspension of Catalonia’s self rule, the Ibex 35 has responded positively with a 2.50% gain on Monday.
Spanish stocks index trackers
However, despite widespread relief that political stability has been regained, investors are not yet returning to Spanish stocks through index trackers. The chart below shows the flow of money coming in and out of Exchange Traded Funds that relate to Spanish stocks.
At the time of writing, the chart shows that outgoing flows have subsided and that a more balanced trend has taken over in recent days. The cumulated flow of money is still very much towards a sell bias over the last 30 days.
Spanish large cap stocks
However, in contrast to the overall picture for Spanish stocks, it’s been business as usual for the large cap stocks which have been attracting investment through index trackers throughout the month of October, with investors clearly confident of a resolution to the political situation, before stability was regained.
Recent performance from the Ibex 35 have proved investors to be right.