Report
Research Department
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IBERIAN DAILY 08 FEBRUARY + 4Q’20 RESULTS. HIGHLIGHTS AND REST OF PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ACS, AENA, CAF, EUSKALTEL, FERROVIAL, FLUIDRA, NATURGY.

At the end of today’s report, and during the entire results season, we will include a presentation with positive and negative results highlights and previews for the 4Q’20 results to be released over the coming days in Spain.

MARKETS YESTERDAY AND TODAY

A full week of gains, with the IBEX up +6%
Another strong stock market performance on Friday meant February ended its first week with 5 straight days of gains, with value recovering lost ground, and all this despite the “apparent” disappointment in January’s US non-farm job creation. Thus, in the Euro STOXX Banks and Construction once again stood out, compared to the drops in Telecoms (again the worst performer) and Household Goods. On the macro side, in the US job creation was disappointing, but the temporary employment segment was strong and the unemployment rate fell abruptly along with a significant rise in hours worked and number of employees. In US business results, Estee Lauder, Aon and Zimmer Biomet beat expectations, with Cboe Global coming in below.
What we expect for today
European stock markets would extend the market optimism with gains >+0.5% with the statements of C. Lagarde outlining that the stimulus can only be withdrawn gradually. We will pay close attention to energy and metal companies with the new raw material rises. As regards Covid-19 vaccines, there are doubts on the effectiveness of that of Oxford-AstraZeneca with South Africa strain that has led the country to stop its distribution. Currently, S&P futures are up +0.5% (the S&P 500 closed unchanged vs. its price at the closing bell in Europe). Volatility in the US dropped (VIX 20.87). Asian markets are rising (CSI 300 +1.2%, Japan +1.9%).
Today in the euro zone we will learn February’s Sentix investor sentiment and in Spain and Germany December’s industrial output. In US business results, Lowe’s, Hasbro and Global Payments, among others, will release their earnings. Debt auctions: Germany (€ 4 Bn in 6M t-bills) and France (€ 5.4 Bn in 3M, 6M and 12M t-bills).
Underlyings
Actividades de Construccion y Servicios SA

ACS Actividades de Construccion y Servicios is a holding company. Through its subsidiaries, Co.'s activities are divided into the following areas: Construction, engaged in the construction of civil works, and residential and non-residential building construction; industrial services, engaged in the development of applied engineering services, installations and the maintenance of industrial infrastructures in the energy, communications and control systems sectors; services, groups together environmental services, the outsourcing of building maintenance services, logistics and transport services; and concessions, mainly engaged in transport infrastructure concessions.

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.

Construcciones Y Auxiliar De Ferrocarriles, S.A.

Euskaltel SA

Euskaltel SA is a Spain-based company engaged in the provision of integrated telecommunication services. The Company's activities are divided into three segments: Residential, Business, as well as Wholesale and Other. The Residential segment provides fixed and mobile telecommunication services, broadband and wireless Internet, as well as digital television (TV) as a single service and in packages. The Business division primarily offers fixed and mobile telephony, as well as Internet access for enterprises. The Wholesale and Other area serves wholesale customers and is responsible for the delivery of communication services, such as infrastructure leasing, information technology (IT) outsourcing, as well as sell of installation material and electronics. The Company operates in the Basque Country, Spain.

Ferrovial S.A.

Ferrovial is a transportation company based in Spain. Co. is engaged in operations in the transportation sector. Co. specializes in the design, construction, management, administration and maintenance of transport infrastructures. Co.'s services range also includes the maintenance of parking lots, and land-, sea- and air-based transport networks. Co. is also engaged in the promotion and operation of short-stay parking lots, parking regulation and management services and promotion and sale of residents' parking.

Fluidra S.A.

Fluidra is engaged in the manufacture and commercialization of accessories and specific products for swimming pools, irrigation, and water treatment and purification systems.

Provider
Sabadell
Sabadell

Analysts
Research Department

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