EUR 100.00 For Business Accounts Only

IBERIAN DAILY 22 JUNE (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ACS, BANKINTER, FERROVIAL, GRUPO SAN JOSÉ, MAPFRE.
Rate rises are not over yet
Stock markets saw new drops, concerned about the warning of further rate rises of around +50bps by the Fed in Powell’s speech before the Congress. In the Euro STOXX, among the few sectors ending with gains, Energy and Banks stood out, whereas Basic Resources and Real Estate saw the biggest drops. On the macro side, in the UK, May’s inflation remained at 8.7% YoY unexpectedly, with the core data speeding up above 7.0% YoY, which underpins more aggressive rate rises at today’s meeting. In Brazil, the Central Bank, as expected, kept the Selic rate at 13.75%. On another note, Turkey would raise today the benchmark rate to 21% from 8.5% currently in an attempt to tackle inflation and the lira’s depreciation. On the geopolitical front, the description of Xi Jinping as a “dictator” by Biden has tarnished the diplomatic progress made in the last few days. Separately, the EU approved the eleventh package of sanctions against Russia, which aims to prevent the country from evading the restrictions thanks to other countries and companies.
What we expect for today
European stock markets would open with losses of more than -0.5%, with value slightly outperforming growth in a session in which the BoE could surprise the market with a +50bps rate hike. Currently, S&P futures are down -0.18% (the S&P 500 ended unchanged vs. the European closing bell). Volatility in the US dropped (VIX 13.20). Asian stock markets are sliding (China’s CSI 300 is closed, Japan’s Nikkei -0.50%).
Today in the UK the BoE will meet, in the US we will learn May’s Chicago fed index, the 1Q’23 current account balance and May’s existing home sales. In Mexico Central Bank meeting.


COMPANY NEWS

GRUPO SANJOSÉ. We continue to see hidden value. BUY.
Although since our previous report, the macroeconomic and interest rate environment has worsened, the impact on our T.P. is not relevant (-9% to € 8.78/sh.). We continue to see much hidden value in the share price, which is trading far from what the sum of the company’s different assets would be suggesting. Its net cash position as of March’23 alone (ex provisions) is equivalent to 59% of its market cap. This discount (-57%) could be explained by its low liquidity, its holding structure (where two families control the company), the lack of strategic fit in some assets and the limited visibility on the investment plan.