skip to Main Content

Free Newsletter: Actionable insight every morning for the self-directed investor. Find out more

Join

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 IBEX 35 Chart

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.

How to invest in the Ibex 35

The Ibex 35 is readily available to traders online as a Contract for Difference or Exchange Traded Fund product. UK residents can also trade the index through a tax-free Spread Betting broker.

Become a better investor with SharePad Designed to give you the confidence to pick your own investments, Sharepad gives you access to a wealth of information on UK, US & European stocks. Find out more

Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Michael Morton

Michael Morton

Michael has worked within the Financial Industry for more than 20 years. Starting out as a financial analyst, he has extensive experience working with fund management groups and brokerages.

With an interest in Stocks and Shares, Funds, ETFs and Commodities, his investment focus is medium to long term gains, with the objective of financial security on retirement, and building wealth for his young children for their adult life. His broker of choice is Hargreaves Lansdown.

Stocks in Focus

Here are some of the smaller companies we are following most closely. They all represent significant growth stories in our view. Our in-depth reports go into more detail on why we like them.

Comments


Preferred Providers

Our partners are established businesses, regulated by the Financial Conduct Authority, and we are grateful for their support.

Pepperstone
FP Markets
IG
Spreadex
Trade Nation
WisdomTree
ActivTrades
Back To Top