IBEX 35 best and worst constituencies in 2023 revealed

The IBEX 35 index moved sideways on Tuesday as investors reacted to the encouraging Spanish consumer inflation data and the upcoming Spanish election. The index, which tracks the 35 biggest companies in Spain, has been stuck at €9,200, a few points below the year-to-date high of €9,540. In all, the index has jumped by almost 12% from the lowest point in 2023.

Spanish inflation slips

IBEX 35 is an index that tracks the biggest blue-chip companies in Spain. The biggest constituent companies in the index are Inditex – the parent of Zara -, Iberdrola, Santander, BBVA, Amadeus, Caixabank, and Celinex Telecom among others. 

The IBEX index remained in a tight range on Tuesday afdter the encouraging Spanish inflation data. According to the statistics agency, the headline consumer price index (CPI) dropped by 0.1% in May from the previous 0.6%. That decline was bigger than the median estimate of 0.1%.

On a year-on-year basis, the headline CPI dropped to 3.2% from the previous 4.1%. The harmonised consumer inflation figure dropped by 0.2% on a monthly basis and to 2.9% from the same period a year earlier.

These numbers mean that the actions by the European Central Bank (ECB) to fight inflation are working. Like other central banks, the bank has decided to hike interest rates several times. It has also hinted that it will continue hiking rates.

The IBEX index also moved sideways after the country’s prime minister dissolved parliament and called for a snap election for July 23rd. These elections will likely interfere in the country’s operations in the near term.

Amadeus share price has jumped by 40.9% in 2023, making it the best-performing stock in the IBEX index. It has jumped because of the strong performance in the travel sector. IAG share price has jumped by 30.67% for the same reason.

Melia Hotels stock has risen by 30% while Inditex, Aena, Cellnex Telecom, and ACS shares have jumped by over 20%. On the other hand, Solaria, Merlin Properties, Repsol, Bankinter, and Unicaja Banco are the worst-performing stocks this year.

IBEX 35 index technical analysis

IBEX index has been stuck in a tight range in the past few days. It has formed a double-top pattern at €9,510. In price action analysis, this pattern is usually a bearish sign. The index has also formed what looks like an ascending triangle pattern while the Relative Strength Index (RSI) has formed a bearish divergence pattern. Therefore, the outlook of the Spanish index is neutral for now.

More gains will be confirmed if it moves above the important resistance point at €9,510. Such a move will see it rally to the next resistance point at €9,600. On the other hand, a move below the support at €9,017 will signal that bears have prevailed and push it to the neckline of the double-top pattern at €8,495.

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