EUR 100.00 For Business Accounts Only

IBERIAN DAILY 01 MARCH (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ACERINOX, CHANGES IBEX, INMOBILIARIA DEL SUR, TELEFÓNICA.

MARKETS YESTERDAY AND TODAY

Europe ended the week with losses, except the IBEX
Following the poor closing on Friday (except in the US), global stock markets ended the week with drops in view of the volatility generated by the rise in US long-term yields, which hit 12-month highs. Value beat growth, and the IBEX 35 was the big winner, closing the week with an increase of almost +0.9% vs. -2% for the Euro STOXX 50. The best-performing sectors last week were Travel & Leisure (expected announcements of easing lockdowns) and Financials (Insurance and Banks, due to the rise in yields), whereas defensive sectors like Food and Pharma, as well as growth sectors trading at high ratios like Technology, posted the biggest losses. On the macro side, in Spain January’s inflation fell to 0% against forecasts. In China, the services and manufacturing PMIs fell more than expected in February. In US business results, Evergy beat expectations and Public Service Enterprise released worse earnings than expected.
What we expect for today
European indices would rally with gains of more than +0.5%, led by growth in view of the sharp drop in the US debt yield on Friday and spurred by Congress’s approval of the US fiscal package worth US$ 1.9 Tn and the CDC’s recommendation that J&J’s vaccine be used in emergencies. Currently, S&P futures are up +0.8% (the S&P 500 closed down -0.75% vs. its price at the closing bell in Europe). Volatility in the US rose (VIX 27.95). Asian markets are rising (CSI 300 +1.2%, Japan +2.4%).
Today in the euro zone we will learn February’s final manufacturing PMI, in Germany February’s inflation and in the US February’s manufacturing ISM and January’s construction spending. In US business results, Dentsply, NRG and Viatris, among others, will release their earnings. Debt auctions: Netherlands (€ 3 Bn in 3M and 6M t-bills), Germany (€ 6 Bn in 3M and 9M t-bills) and France (€ 6 Bn in 3M, 6M and 12M t-bills).


COMPANY NEWS

ACERINOX: Results above expectations. Positive outlook. BUY.
Results beat expectations in EBITDA (€ 131.0 M; +74.7% vs. +27% BS(e) and +28% consensus) thanks to better-than-expected sales. Net Profit came in below expectations due to a provision linked to negative taxable basis (not entailing cash outflow and reversible), excluding this, Net Profit would have been above expectations. As for its outlook, the comments are positive. ACX states that the recovery of the stainless steel market that started in mid 4Q’20 continues, expecting the 1Q’21 EBITDA to beat 4Q’20 levels (€ 131 M). In short, good results and prospects (in both the traditional and special alloys businesses) that lead us to foresee a positive market reaction.

CHANGES IBEX. Technical Advisory Committee will meet on 11/03 in its first follow-up meeting of the year, and we do not expect any changes.
The IBEX 35 Technical Advisory Committee will meet at the closing bell on 11/03 in its follow-up meeting (held in early March and September). Note that in these meetings, apart from weighting changes, there are normally no changes made to the composition (changes that are normally made in the June and December meetings). Analyzing accumulated volume and free float, on this occasion we do not expect any changes. The press is mentioning the possible exclusion of Meliá and the inclusion of Fluidra, but the latter does not have enough liquidity despite having 3x Meliá’s market cap.