More than enough reasons to worry BBVA investors. One of the pointer values Spanish equities have seen their share prices plummet as a result of their excessive exposure to the Turkish economy. A place that is in serious trouble after the serious loss of value of its currency due to the commercial war that are traversing your country with respect to the United States. To the point that not a few financial analysts think that we are at the beginning of an economic crisis that can affect the whole world.
In this sense, it must be remembered that BBVA's exposure at the moment is very high, with financial assets in the Turkish state of up to 84.000 million dollars (73.200 million euros). It cannot be forgotten that one of the great blue chips of reference index of the Spanish stock market, the Ibex 35, controls almost half of Garanti, one of the most important banking entities in the Ottoman country. For this reason, the shares of the financial group chaired by Francisco González have collapsed this past Friday.
All this, in a summer period in which it will have caught a good part of its small and medium investors on vacation. Because in the coming days a powerful sale of its shares may be activated, with the risk of new and oversized falls in the financial markets. To the point that many users do not know what to do these days, if on the one hand undo positions in this important value of national equities. Or on the contrary, stay in positions with the hope that BVVA shares will recover their value in a period of time that is not excessively long.
BBVA has fallen more than 5% in the stock market
The effects of the Turkish crisis have not been long in the valuation of the securities of the great national bank. Because in effect, its depreciation has exceeded 5% and with it has dragged the Ibex 35, as one of the most punished stock indexes these days. Because it is unknown if the worst is yet to come. On the other hand, the banking sector it is being one of the most exposed to this crisis that has reached the powerful Muslim state. With declines in the remaining banks of the Spanish stock market between 1% and 2%, although without reaching the alarm that has been generated among BBVA shareholders.
It is a scenario that is being very problematic for all investors since the bank to which the Spanish financial company is linked has left in recent weeks nothing less than 2.500 millones de euros. All a signal that is precipitating the struggle between sellers and buyers with a clear advantage for the former. At least until now and it will be necessary to check what the evolution of the financial markets is from this week as it will be key to highlighting what is the best strategy that investors should take.
Delinquencies in Turkish banks
One of the aspects that should be valued the most in the crisis that is affecting Turkey is that the bank led by Francisco González has a close market share to 10 percent in the Turkish country. Something very important to analyze this new economic crisis that almost no one expected. Although on the contrary, the delinquency levels are not really very worrying. Located at the moment very close to 5%, although of course increasing in the last twelve months. In any case, the position of the large Spanish bank is going through some very delicate moments for all investors.
At this time we will have to wait for what happens with the next business results of this financial group. To the point that it can give the most objective guidelines to undo or not the positions in this stock market value. Because it is true that almost anything can happen, as many financial analysts are warning. From this perspective, the most advisable thing is to be on the sidelines of these actions because they can give more than one upset in the coming quarters. And what it is about at the end of the day is to avoid these situations so little desired by the investors of this bank.
Investment strategies in the bank
At this point, you will have to consider what you should do with your actions from now on. Because in effect, BBVA is a value that was very sure, but that has suffered a serious collapse in the stock market in these days of August. To avoid operations that are not very conducive to your interests as a retailer, you will have no choice but to take some actions for your safety. Which is what it is all about, and for this we expose you some types that can be very useful in these complicated days.
- If you are interested in opening positions in BBVA, it will be much better for you to wait new entry opportunities in the stock market value. Of course, now is not the most appropriate time, far from it. Not surprisingly, you have more to lose than gain in this kind of operation. At least delay your decision for a couple of weeks or at least until you return from this summer vacation.
- Do not think that the value of BBVA shares can be very cheap, because it can precisely be on the contrary. To the point that it is one of the most conflictive options of all international exchanges and it is not a matter of gambling your money in an absurd decision, but above all premature.
- On the other hand, this bank did not show a technical aspect really enviable, if not that on the contrary it generated many doubts among analysts and small and medium investors. Take advantage of this relevant data to stay out of your operations. Because in the end you will win from any investment strategy that you use from these precise moments.
- If what you want is to quick operations Of course, you will not be faced with the best value to use this peculiar investment system. In this sense, you cannot forget that the shares of this financial group are currently under very downward pressure. Why risk your financial contributions?
- It's true that you can find lower prices in the next and for this reason it is not wise to go ahead in operations. You should not buy hot as you can surely make a mistake. You should not take action at this time when the shares of the Spanish bank have plummeted.
- If, on the other hand, you have open positions, it is not the right time to don't move. It will be much wiser if you wait a few days to see how BBVA shares evolve. Another very different thing is that the falls in the stock market are every day and with special intensity.
Is it a BBVA purchase opportunity?
Despite what some small and medium-sized companies may think at the moment, BBVA is not a business opportunity. If not, on the contrary, its technical aspect has noticeably deteriorated. To the point that it costs a lot to return to the initial situation, before the outbreak of the crisis in Turkey. Of course, there are other large banking groups that are more favorable to take positions. Without the risk of exposing yourself to their Turkish connection. Another very different thing is if your term of stay is medium and long. In this case, it may be interesting to buy BBVA shares with the discount in their prices that occurred at the end of last week.
On the other hand, the banking sector is one of the business segments that you should avoid during these atypical days in international equities. It's certainly not the best bet you can take right now. You have other more defensive sectors that are presented with lower risks in the investment strategies that you are going to undertake. This is not to say that banks are going to get it wrong in the longer term. Not much less, but you must address the values that are under a Uptrend very clear. Beyond other technical considerations and maybe also from a fundamental point of view.
Finally, it is convenient for you to remember as we have explained previously that you can find lower prices in the next few and for this reason it is not prudent for you to get ahead in equities operations. There is no doubt that this summer you will be able to find even lower prices and with a more interesting revaluation potential than now. Because on the stock market, rushing is not good advisers, and this is perfectly true for BBVA shares. Any wrong move can make you lose a lot of money in the financial markets.