Report
Research Department
EUR 100.00 For Business Accounts Only

IBERIAN DAILY 24 JUNE (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ACERINOX, AENA, TALGO.


Stock markets rally from support levels
Despite the political uncertainty in Europe and Friday’s corrections, the main European stock exchanges managed to rally last week from support levels, ending in positive territory. Thus, the Euro STOXX 50 was near the 4,900-point reference, climbing ~+1.00%, whereas the Ibex35 was at 11,000 points, ending the week practically unchanged. In the STOXX 600 almost all sectors rose, led by Travel&Leisure and Insurance, whereas Real Estate and Household (Retail) ended with the biggest drops (-0.4%). On the macro side, in the UK May’s retail sales came in above expectations. In the euro zone, June’s PMI data were worse than expected (manufacturing PMI at 45.6 from 47.3 previously vs. 47.9 expected and services PMI at 52.6 from 53.2 previously and 53.5 expected). In the US, existing home sales dropped less than expected in May and June’s manufacturing and services PMI rose more than expected, whereas the price subindices showed the lowest levels in the past 4 years. In Mexico, April’s IGAE activity index dropped more than expected. In China, the government will set up a fund to bail out financial institutions that will be financed by the institutions themselves and it will be ready by the end of the year.
What we expect for today
Stock markets would open with a slightly bullish slant. Currently, S&P futures are down -0.08% (the S&P 500 ended -0.17% lower vs. the European closing bell). Asian stock markets are mixed (China’s CSI 300 -1.12%, Japan’s Nikkei +0.74%).
Today in Germany we will learn June’s IFO.
Underlyings
Acerinox SA

Acerinox is the parent company of a group engaged in the manufacture and sale of flat and long stainless steel products, and stainless steel wires. Co.'s major products include slabs, billets, black coils, plates, hot-rolled coils, hot-rolled sheets, flat bars, hot-rolled re-bars, hot-rolled black bars, engraved sheets, cold-rolled coils, cold-rolled sheets and circles. Co. also provides long stainless steel products, such as wire rods, angles, hot rolled flat bars, hot rolled re-bars, reinforced bars in coils, cold rolled re-bars, hot rolled black bars, cold drawn bars, and smooth turned bars. In addition, Co. offers wires, welding wire bars, and bars for electrodes.

Aena SME SA

Aena SME SA, formerly Aena SA, is a Spain-based company primarily engaged in the airports operation. Its activities are divided into four segments: Airports, which comprises Aeronautical subdivision, responsible for the management of airports, jetways, security, handling, cargo and fuel services, among others, as well as Commercial subdivision, including duty-free and specialty stores, restaurant services, car rental, as well as banking services and advertising; Services outside the terminal, which manages real estate assets, such as parking lots, warehouses and lands; International, which comprises operations of Company's subsidiary, Aena Desarrollo Internacional SA, that invests in other airport owners principally in Mexico, Colombia and the United Kingdom; and Others, encompassing corporate activities. It manages tourism, hub and regional airports, as well as heliports and general aviation areas. Furthermore, its destination range comprises Europe, the Americas, Asia and Africa.

Talgo SA

Talgo is engaged in designing, manufacturing, repairing and maintaining the railway rolling stock, as well as the manufacturing, assembling, repairing and maintaining the engines, machinery and parts of the railway systems. Co. has an industrial presence in seven countries: Spain, Germany, Kazakhstan, Uzbekistan, Russia, Saudi Arabia and U.S.A. Co. has an active fleet in Europe, Asia and North America that comprises of 94 high-speed trains and more than 1,400 Talgo tilting passenger cars. Also, Co. purchases, redesigns, constructs, leases and sells all types of real estate.

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Sabadell
Sabadell

Analysts
Research Department

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