When making your investments in the Spanish equity markets, one of the things you have to look at is the sector to which you are going to direct all your savings. It will be a very important decision for the next evolution of your investment portfolio since the differences from one sector to another in the stock market can reach up to 5%. And therefore it can influence the result of your operations with these financial assets. For this reason, it is very important that you analyze the sectors that may be best to defend your interests as an investor.
Within this general context, you have to see that the offer offered by the equity market is very wide and diverse in nature. From the banking to electric, going through that of food. That is, you have many proposals to choose from and this choice will be exposed to different behaviors by the aforementioned stock market sectors. Where one of the investment strategies that you can carry out is a diversification in it as an objective to preserve savings from now on.
While on the other hand, it is convenient that you know that some sectors have better performance than others in certain periods. Both with regard to expansive and recessive processes. And that in both cases it will require different treatments depending on the economic situation. For this reason, it is why sectors at a global level can differentiate between cyclicals and non-cyclicals and that can give you more than one idea about where you should choose the values to make the available capital profitable. Something that is used by many small and medium investors to execute their decisions in the equity markets of our country.
Sectors in the stock market, the banking
It is undoubtedly one of the most relevant in the national stock market and with a very important specific weight in the Ibex 35. It is a segment that is very well represented in the national equity markets and in any case above the indices of the neighboring countries. With representatives as they are BBVA, Santander, Bankia or Sabadell to cite some proposals of this important line of business. Which is characterized by the value of a dividend that offers an average yield of around 5%, on average of the values of the selective club of the Spanish stock market. That is, you will not have any problem placing your money from now on.
While on the other hand, you cannot forget that this class of values is characterized by being very safe. Despite what has happened in recent years with the popular Bank and to a lesser extent with Bankia. From this perspective, it should also be noted that this is one of the worst sectors that has behaved in 2019. With a decrease in their positions and that in some cases they have been very significant for the interests of small and medium investors. Because of the risk they carry and that can create some other problem from these precise moments.
Electric as a refuge value
It is the refuge sector par excellence as has been seen in the first half of 2019. With a annual appreciation of more than 10% and that also reports a dividend distribution with an interest rate very close to 7%. In other words, the highest in the selective index of the national equity markets. To preserve itself from what may happen in the financial markets in the coming days. With such relevant securities as Endesa, Iberdrola or Naturgy, as some of the most relevant.
This sector is characterized by the fact that it performs better in recessive movements in the stock market and, on the contrary, worse in expansive ones. From this point of view, it is a stock market bet that has the most defensive or conservative users the most conducive to opening positions. Not surprisingly, they are the ones that help them the most to preserve their positions in the stock market, boosted by the profitability of their generous dividends to shareholders. While on the other hand, their prices are more stable than in the rest of the business segments.
Construction companies under the protection of brick
It is fundamentally a sector of the Spanish economy and has acted as a recipient of savings for a large part of small and medium investors. At the moment, the divergence in their companies is very wide, where there are some values that are clearly bullish, while others are in negative territory. With a dividend distribution which is not one of the most rewarding in the selective index of Spanish equities. Despite the fact that its business lines have been very profitable in recent years.
In this sense, ACS, Construction and Services Activities, has been included in the Dow Jones Sustainability Index (DJSI), both in the global (DJSI World) and in the European (DJSI Europe) index. These indices are one of the main world benchmarks in governance and sustainability and recognize the leading companies, according to economic, environmental and social performance criteria using a highly demanding evaluation methodology and criteria.
The tourism sector with little power
This is one of the sectors of the national economy with the greatest influence and that, however, does not have great power in the stock market indices of our country. With very few values and most of them are to be integrated into the selective index of national equities, the Ibex 35. In which are business segments such as airlines, reservation centers and especially hotel accommodations. With signatures of the relevance of NH Hoteles, Sol Meliá, Amadeus, IAG or Vueling. With a medium or small capitalization in their positions in the equity markets.
In a sector, such as tourism, which has had seasons in past years in which nominal income from foreign tourism grew according to the Bank of Spain at average annual rates of 4%, that is, growth rates of 2% each year after discounting inflation. But that has not had an impact on the financial markets. If not, on the contrary, they are values that at the moment show a downward trend despite the good data from the tourism sector in Spain. With a return per share below that of other sectors and that has been a factor for the selling pressure to be imposed on the buyer.
Industrial sector, very little visible
It does not have the strength as in other countries in our closest environment. Without its representation in the selective index of national equities. Where its most relevant components are the steel mills of Arcelor or Acerinox. Where the volume of shipments of steel products in the second quarter of 2019 stood at 22,8 million tons, which represents an increase of 4,3% compared to the first quarter of 2019 and an increase of 4,8% with respect to the second quarter of 2018; the volume of shipments of steel products in the first half of 2019 was 44,6 million tons, which represents an increase of 3,5% in year-on-year terms.
Feeding underrepresented
It is another of the sectors very little valued and whose incidence does not go beyond a couple of listed companies. Where its most relevant component is ebro and that it is precisely not listed on the Ibex 35. In any of the cases, it is another of the most defensive sectors of national equities and that prevails to protect the savings of small and medium savers who do not want risks in their operations. And therefore they choose some of these securities that on the other hand do not stand out for the profitability of their dividends.
While on the other hand, they are very small capitalization since very few titles move in all the trading sessions. What allows the strong hands of the financial markets to manipulate the prices of their shares. That is to say, with very few titles they can do the ones that best suit their interests and that goes against the intentions of small and medium investors. From this point of view, this sector is not highly recommended to open positions from now on. If not, on the contrary, it is rather for specific operations and over limited in the amount of operations.
These are by way of summary some of the sectors where you can invest your available capital. Although it is through very few proposals to go to and all of them are not very visible in the equity markets. With a not very relevant influence on users. With a return per share below that of other sectors and that has been a factor for the selling pressure to be imposed on the buyer.