All sector values continue to lose positions after collecting more than 5% declines yesterday
Shares of Spanish banks continue the stock market decline that started yesterday after the Prime Minister, Pedro Sánchez, announced a new tax on the sector, along with the already announced tax on electricity companies, because of the extraordinary profits generated in this economic crisis. In the first minutes of this Wednesday, almost all stocks are giving up positions, albeit to a much lesser extent than this Tuesday.
Specifically, Banco Sabadell fell 3% at the start of the session, while Bankinter fell 1.1%, Santander 1%, CaixaBank 0.7% and BBVA 0.1%. In the Ibex-35 as a whole, it fell 0.5% below the 8,000 mark.
Investors fled the sector en masse on Tuesday after Prime Minister Pedro Sánchez announced a new tax on large entities that is expected to raise $1,500 million a year over two years. A total of 3,000 million euros. The tribute, of which it is not yet known how and in what form it will be applied, completely surprised the market. And it was precisely this unexpected factor that accelerated sales, leading to sharp declines for the entities’ shareholders, which exceeded 11% at the worst times of the session.
The sales bleed was softened towards the end. But the reds topped 8.6% at CaixaBank, in its worst session since March 2020, amid the outbreak of the pandemic. Losses amounted to 7.44% in Banco Sabadell, keeping the price at 0.61 euros. And they exceeded 5% in Bankinter. For their part, BBVA and Banco Santander trailed more than 3.5% at the close.
After this collapse, the five major Ibex entities lost, in round numbers, some 5,230 million euros on the floor, keeping their total capitalization below the 100,000 million euros mark.
The worst unemployed in terms of market value was CaixaBank, which lost more than 2,000 million euros on the day. Banco Santander and BBVA, for their part, lost 1,679 million euros and 1,021 million euros respectively, while losses exceeded 281 million at Banco Sabadell and 233 million at Bankinter.
Analysts agree that the situation will negatively affect the sector. And Accuracy director Alberto Valle points out that the rise in interest rates “normalizes a totally exceptional environment for the price of money” and has indicated that it remains “historically low” in the eurozone. Therefore, the higher income that comes from an interest rate hike is a “normal part” of banking and “nothing special at the moment.”
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
