One of the most active sectors during the first quarter of the year is undoubtedly the banking sector. Not reasons for their business accounts, or because they have fewer benefits. But this time the reason is due to the corporate movements that can be developed in a large part of the financial groups of our country. And very specifically of the mergers that may emerge from these moments. To the point that the hiring of titles in this sector is higher than a few months ago.
This incidence has led a good part of the small and medium investors to have put certain on their investment radar. very sensitive banks in these operations. It seems that again there will be movements with these companies. Make no doubt that if you act very quickly you will be able to make profitable savings more effectively. And who knows if you can create a really stable savings exchange from now on with great potential for revaluation.
Because in effect, practically all the members of the national continuous market are involved. Where it is very predictable that the volatility is installed in the quotation of their prices. At least for a period of time long enough to undertake a truly effective investment strategy. With a volume of contracts that exceeds that of other sectors, as an indication that something is happening with Spanish banks. Or at least with some of them. Do you want to know what is happening with this relevant sector of the Spanish stock market?
Banking sector: movements
If you want to invest your savings from now on, of course you cannot forget about the banking sector in any way. A new wave of mergers or corporate movements of great business significance. In some cases they can hurt your positions in equities, but in other cases the opposite. That is to say, obtain important benefits in the operations carried out from now on. You will have to be very attentive to everything that happens with financial entities.
From more aggressive approaches than on other occasions. The occasion could well be worth it for you to open positions, depending on your monetary possibilities. With the added advantage that in some values you will have a dividend every year. With a return on your savings that can rise up to 6%. Especially, if the term of permanence of your investments is directed to the medium or long. Regardless of what may happen with the quotation of their prices in the financial markets.
Predictably these movements will not take long to develop. It can even be a matter of weeks or in the worst case of months. But it seems very likely that at least some of them will materialize. In this sense, there will be no choice but to see what the final reaction of the equity markets will be. With the sole purpose that you can take advantage of this situation that the banking sector currently presents.
Fusion of Popular with Sabadell
It is a loud cry in the trading floors of Spanish equities. It seems that at any moment you can confirm the news. In any case, you must be prepared to act in the markets and try to get the maximum benefits from this operation. To the point that Auriga Sociedad de Valores almost takes it for granted. Like other financial intermediaries of special relevance. Not surprisingly, it is more than just a rumor. And the activity of its titles in the financial markets indicates this in recent days.
Information from the Catalan newspaper La Vanguardia warns that both entities had taken time to think about a possible marriage. But in any case, the final result seems to be already written. In any case, everything seems to indicate that it would be the Catalan bank who would take the reins of the new business group. Controlling 58% of the resulting entity. Fact that raises a crucial fact for your interests as a small investor.
Because in effect, the question that arises at the moment is whether it is more profitable to take positions in one bank or another. It seems like the best of moves would occur in the Popular. He would be the one who would benefit the most from the operation. In particular, after the latest problems that it is having and that have led its share price to trade at historic lows. With a depreciation in value such as has rarely been seen in national equities. Being one of the worst values on the stock market.
Movements in La Caixa
Another Catalan entity is the origin of these same movements, although with different perspectives. Because it seems that after your Portuguese adventure, it seems that you want to take a break before starting new operations. So at least they comment on it from their governing bodies. But there are not a few financial analysts who think that it would not take long to respond to the possible movements of Sabadell. It seems that these new operations would be a matter of time.
In any case, it is in the pool of possible operations in the banking sector. With many combinations in play. Faced with this scenario, it will be one of the hottest stocks on the national stock market. Where anything can happen. Since it has falls in its prices until its price can rise significantly as a result of these corporate movements. Up to levels that would return its price to levels of its historical maximums. Very close to the barrier of five euros per share.
Bankia one of the desired objects
After its good business results, everything seems to indicate that it is going to make a move within the panorama of the banking sector. All the news is aimed in this sense, and you need to know it to know what position you should take in the coming days. Of course, it will not be an easy process because the other banks apparently have already moved their chips to rebuild the banking sector. In a not excessively long period of time.
With these general perspectives, it seems very clear that BNM is the main candidate to undertake these movements in the banking sector. In this sense, the analysts of the main Spanish financial institutions applaud the merger of these two financial institutions for a very obvious reason. It is none other than the added value it provides to shareholders and ultimately to the taxpayer himself.
Values outside this sector
There are also other stocks that are in a very hot moment in their price. This is the case in particular of the construction company FCC, which is at a very important moment in its evolution in equities. Not surprisingly, there are many small and medium investors who are awaiting what they can do in the coming months. Where it promises very strong emotions for all savers.
Because indeed, one of the hottest stocks on the national stock market is undoubtedly FCC. The many doubts that the composition of its shareholders is generating are leading to its prices moving with a lot of volatility. Because in effect, this construction company is becoming one of the most active in the benchmark index for Spanish equities.
By fundamentals, it has seen its forecasts lowered as a result of the departure of Great Britain from the community institutions, known as Brexit. In this sense, Ferrovial has generated a net profit of 279 million euros during the first nine months of the year. Nevertheless, represents a reduction of around 42% with respect to the results of the previous year. One of the reasons for these weak results is to be found in the devaluation of the pound as a result of Brexit.
FCC: lower business profit
The latest data published by the national construction company also show a significant drop in its gross operating profit (Ebitda). Not surprisingly, it has been reduced by just over 30%, reaching the figure of 425 million euros. Also influenced by the effect on currency exchange, and especially on the British currency. All this has caused a good part of financial analysts to have lowered the target price of the construction company. In some cases drastically.
New shareholders in the company
Another of the fundamental elements to analyze its fundamental aspect is that which has to do with the composition of the shareholders. After a long process to take control of the companies and which has brought the price of its shares to levels around seven euros per share, things seem to have calmed down. The reason is none other than the definitive assault of Mexican magnate Carlos Slim to the power. Because after having carried out a capital increase of 700 million euros, it has taken definitive control of the company after more than a year trying to carry out this business strategy.
This fact is causing, that again the buyers are imposing on the sellers through a greater accumulation of titles. In what can be constituted in a movement back towards 10 euros per share. In which case, it would be a clear purchase option for investors.