At the macroeconomic level, there are several factors that weigh on the stock markets worldwide and the Ibex 35 suffers even more. First, investors are shedding positions after a sharp rise to record highs in the three major Wall Street indices and the Cac 40 and the German Dax, which could be described as a healthy correction after the year’s excesses in the that have also flown commodities and cryptocurrencies for two reasons: omicron and the Federal Reserve.
The new omicron variant worries investors due to doubts and uncertainty about the efficacy of vaccines against this new strain of Covid-19, with new restrictions and confinements in Austria, Germany or Belgium between the countries of the European Union or Japan limiting foreign tourist travel. At the same time, the Federal Reserve is changing its discourse on inflation and the latest statements from its officials suggest that the general increase in prices cannot yet be classified as transitory. The market already discounts three rate hikes for 2022 in the US and the first in June.
The president of the Federal Reserve, Jerome Powell, has already advanced that the central bank will debate in its next meeting, on December 14 and 15, an increase in the cut of its purchasing program. According to his explanations, at the moment, the US economy is very strong and inflationary pressures are greater, so, in his opinion, it would be appropriate to consider ending the reduction of the Fed’s asset purchases earlier than initially provided.
In this context, investors are adjusting their portfolios in light of the new scenario opened by the Federal Reserve and the uncertainty posed by the new strain of coronavirus. “The message is one of absolute caution, however there are some values that are to be kept in the Spanish stock market for those who are already inside such as Red Eléctrica, Naturgy (Natural Gas) or Laboratorios Rovi, not to enter, which are defensive companies”, he points out IG analyst Sergio Ávila. Defensive companies differ from those linked to the economic cycle because, in general, they have predictable income and profits and are even regulated by public administrations, thus offering certainty to investors in times of volatility.
“Red Eléctrica continues to be in an upward trend, perhaps some technical indicators show us some weakness, but we have supports at 18.22 euros and in the succession of the increasing lows that we have been having since last September 10 and as long as it does not lose the guideline it can be kept in a portfolio. Naturgy also holds up well and as long as it does not lose support, nothing would happen. It would be necessary to watch that it did not lose the 23.85 euros, but for the moment it is strong. Rovi is a company in a defensive sector such as pharmaceuticals, it is the manufacturer of Moderna’s vaccine and if Covid-19 does not lessen its impact, it may continue to be interesting, “adds Ávila.
To the three stocks that the IG analyst advises to keep in the portfolio, a fourth value should be added: Enagás. The natural gas transportation company and technical manager of the Spanish gas system also maintains a bullish structure and an outstanding score in the technical indicators of Investment Strategies as well as Red Eléctrica and Rovi. Naturgy is satisfied with a 7.5 out of ten.
Laboratorios Rovi also stands out for having the approval of the consensus of analysts, since it has ten purchase recommendations out of a total of ten issued and a potential upside of more than 8% to 68.54 euros per share. The rest of the actions are to position themselves in the short term, maintain positions and hope that the selective Spanish can make ground and begin to overcome relevant resistance.
“At the moment, the Ibex 35 has stopped at the support of 8,250 points, but now we have a lot of resistance along the way 8,560 points, the guideline that linked the previous rising lows that are at 8,750. Then we have the long-term average that is turning down with respect to the average of 50 sessions and that in principle is negative. Volatility, however, generates many opportunities in the intraday, but until I see that Wall Street is on the ground, I would remain cautious, “adds Ávila.
“Enagás launches a new attack on the medium-term resistance zone that we project from 20.43 / 20.08 euros per share, the overcoming of which would enable a reactivation of the growing medium-term structure, with the updating of objectives bullish to the area of 23.06 euros per share, all without accumulating excesses and with a growing volume of trading “, comments the Investment Strategies analyst, José Antonio González, in his latest report on the Ibex 35 and 35 Spanish selective values.