The instability that markets are experiencing these days in Italy and Spain is harshly punishing the values of the banking sector. Virtually without exception and with a sales level that attracts the attention of financial analysts. To the point that further price cuts are not ruled out over the next few days. In any case, there are many millions that investors who have open positions in these equity proposals have lost. Where sales are clearly imposing on purchases. With a very high trading volume which indicates the veracity of these movements.
While in a few days, the selective index of the Spanish stock market, the Ibex 35, about 4% has been leftThe values represented by the banks are the most affected. Among other reasons because its behavior is being but that the remaining stock market segments. With decreases in some cases above 5%. This indicates that it is not a good time to opt for banks at such a tense time on the part of the financial markets. Where the nerves are on the edge of the foot and at any moment the panic of continuing the current trend of the markets can arrive.
It is not only Spanish banks that are falling hard in these days of many uncertainties. But on the contrary, this selling trend is also affecting those of the old continent, although not as intensely as in the national ones. It is a sector that is losing support of special relevance and that announces additional falls in the coming days or weeks. Where the most practical thing is to be on the sidelines of their positions. The least for a more or less lasting period of time.
Banks: weakness in their trend
If the evolution of Spanish banks at this time is characterized by something, it is undoubtedly by their strong technical deterioration and despite the fact that some of them have high growth potential in the medium and especially long term. But in fast operations, an exposure that is clearly unnecessary at this time should be avoided. There are more risks than benefits that can generate your open positions. With the risk of losing a good part of the invested capital. Beyond other technical considerations and even from the fundamental point of view.
The recommendations of financial analysts are very clear in these precise moments: sell, sell and sell. And if you are not exposed to this kind of securities, the best investment strategy is to wait. Because without a doubt there will be an opportunity to buy their shares at much more competitive prices than those showing right now. As a consequence of this scenario, the first thing that small and medium investors will find is a greater possibility to increase their profits. Of course, once the equity markets have calmed down. Something that for now is very complicated although we will have to be attentive to check its evolution.
Bankinter aims for greater diversification
Due to the technical aspect, the one that shows a better appearance is from the representatives of the medium-sized bank such as Bankinter. Not surprisingly, it has closed the first three months of 2018 with a net profit of 143 million euros, and with a profit before tax of 195,9 million. These data represent a growth of 15%, and 14,2%, respectively. With regard to the delinquency rate presented by this bank, it is 3,40% from 3,90% last year. In any case, it has undergone a technical improvement in recent months that has encouraged many investors to open positions in this financial group, even with the risks associated with this type of operation.
It is a more defensive value within the banking sector and has not been so punished during these days of political and economic instability in the past. peripheral countries of the euro zone. In any case, it is a proposal that accumulates certain risks because in the end all banks will depreciate with respect to the conformation of their prices. Although Bankinter's movements are certainly not the most violent of all. Rather, they move with greater moderation.
Bankia: less exposed to brick
Another of the benchmarks in Spanish equities is Bankia due to its special characteristics. In this sense, it should be remembered that the old Madrid savings bank has obtained a net profit of 229 million euros in the first quarter of the year. What are your strengths compared to the competition? Well basically what counts right now with less delinquency and exposure to brick. This plays in favor of a prudent taking of positions in the value, because it cannot be forgotten that it is immersed in the worst of the sectors in the last week.
Of course, Bankia has reported many benefits for small and medium investors in recent years. But it is precisely for this reason that you are at greater risk of corrections are more violent than in the remaining securities of the banking sector. More than enough reason to be out of their positions for a long time. Not surprisingly, some financial analysts consider that its price is overvalued at the moment. Because it is trading under a buying pressure that is less and less intense.
Santander has deteriorated its technical aspect
With regard to the financial entity chaired by Ana Patricia Botín, the prospects are not at all promising. This is based on the fact that a few days ago it has lost the lateral range that it formed during the last twelve months. And what was represented in levels of 5,1 euros, and that from now on becomes an important medium-term resistance. Another aspect that works against a positioning in Banco Santander is that it has also experienced a strong upturn in volatility. With wide differences between their maximum and minimum prices.
On the contrary, we cannot forget that this financial group is one of the most powerful in the world and that should help its falls to be much more controlled than in other banking groups. This is a factor that can help small and medium investors to remain confident in these positions. Not in vain, has he offered a great stability in recent months, although now the scenario is substantially different. It is what this proposal offers investors, which is in the pools of all financial analysts.
BBVA with high level uncertainties
The most erratic value in the Spanish bank sector is undoubtedly BBVA. For a more than convincing reason and that is that it is at annual lows. This is a factor that can induce sales to continue in the medium term due to the weakness shown by its price and which indicates that everything could get worse. Something that does not play as to impose purchases from now on, and that will be valued with an important analysis by retail investors. Beyond other fundamental considerations that you should assess in these weeks.
One of the most likely scenarios that can develop is that BBVA's actions are that their prices are immersed in a bearish channel. So that the value of its shares are moving at levels between 5,60 and 5,32. As long as the trend of the financial markets is bearish during the next few weeks. In any case, it is a very difficult decision to make in the current situation. Although in recent days, BBVA shares have been characterized by showing a high volume of trading.
What can investors do?
In this scenario that arises from now on, the best decision will be go to other securities on the Spanish stock market. As long as the context of the financial markets is like the current one. And this in the bag can never be insured, as you yourself will know. In any case, one of the options you have is to take advantage of the rebounds to make the savings profitable. In a very short-term class of operations that will be very similar to those developed in the same trading session. However, you run the risk of getting hooked on open positions.
Of course, one of the most effective and safe strategies at the same time is substantiated through the contracting of other financial products. For example, investment funds based on financial assets that are more reliable than stocks. As can be the case of raw materials or even from positions based on the volatility of financial markets. Where you can have a greater upward journey in a period of great economic uncertainty. At least you can try it from more conservative positions or on the contrary with a lower capital than you have been moving these days.
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