07/07/2020
We share an article written by Alberto Matellán, Chief Economist at MAPFRE Inversión, in which he explains this issue in an interview for “A Media Sesión” on Radio Intereconomía
The outlook for markets remains unclear, though they no longer provoke the feelings of anxiety felt in the worst moments of the pandemic. So far this year, the IBEX 35 has decreased 25 percent and is straggling behind other European benchmark indices. Alberto Matellán, Chief Economist at MAPFRE Inversión, explains in an interview for “A Media Sesión” on Radio Intereconomía that this is due “to the greater weight of the banking sector in the Spanish selective, but also mainly to the greater exposure of Spanish companies to Latin America, one of the regions most affected by the pandemic.” However, he says that “all this is already considered and banking, despite being the sector that suffers most from the yield curve or the possibility of default, is already close to landing on the stock market.”
Investors will be looking closely at the corporate results that will be published in the coming days. According to Matellán, this will, in fact, become “the most important variable” and will determine the market’s next movements. But the expert states that, beyond the second quarter results, “what is important is the guidance they provide on future results, because that is where we will see the true ability to recover.”
Along with banking, the tourism sector has been one of the worst hit. Despite the negative outlook for activity, Matellán does not believe that this necessarily means reducing exposure to zero. “It is true that the sector has been badly hit in the circumstances, but it won’t disappear and new business models are being created that will lead to good and bad companies. That is why we must make careful choices in this new context,” he adds.
Access to the full Press Release here.
