It is well known that Brexit is a term coined to refer to the United Kingdom's exit from the European Union. But what is sometimes unknown by some small and medium investors is the relationship of Spanish companies and that are listed on the selective index of national equities that may be affected if this process is finally completed. Because it can give more than one clue so that from now on, positions are taken or not in some of the securities that are integrated into the Spanish continuous market.
Of course there are several listed, and high cap and with very specific weight in the Ibex 35. That for now may be affected in the configuration of their prices to carry out this political and social process. To the point that it can bring in many euros in the operations we make in the equity markets from now on. Especially if, as a consequence of Brexit, it can lead listed companies to develop a deep downward trend. Where we will have all the probabilities of leaving us many euros along the way.
Within this general scenario, it is very convenient to take into account companies with business and commercial interests in Great Britain. Because in effect, there is a bunch of listed companies whose presence in the Anglo-Saxon country is increasingly powerful and that may suffer the effects of the United Kingdom leaving the European Union. If it were this way, there is no doubt that its depreciation in the equity markets would be a fact from that moment on. With foreseeable falls in the conformation of their prices and that can take them to much lower levels than those that are quoted at the moment.
Brexit: Iberdrola
The electricity company may be one of the most affected if the United Kingdom's exit from the European Union is consummated. In addition, these days the news has come out in the media about the intention of the English Labor Party members to nationalize the services offered by the Iberdrola subsidiary in this part of the European continent. A fact, that if it occurred, would be a strong blow to the interests of this blue chip of national equities. With very bearish implications in its price that could even take between one and two euros in its price.
Despite the fact that the technical aspect of the Spanish electric company is really impeccable since it remains in the best of the figures that can be had in the stock market and that is none other than the free rise. Namely, without more resistance ahead what can make us see more escalations in the formation of their prices. Beyond its technical considerations and maybe also from the point of view of its fundamentals. But in return, it would be one of the values most affected by the possible exit of the United Kingdom from the European Union.
Santander very exposed
Another of the securities with the greatest exposure to this social fact is Banco Santander. Because in effect, the entity that presides Ana Botín has an exhibition above 11% to the UK. Which is saying a lot in terms of operability and this can drag the financial institution down in the equity markets. Not surprisingly, it also has a subsidiary bank in Scotland and the departure of the United Kingdom from the European Union would be noted in its income statement.
Therefore, there will be no choice but to exercise great caution in the valuation of this company to join our next portfolio of stocks for the next few years. Because you can resent this event that can emerge at any time. In addition, with a very weakened state in its shares and that has led it to test levels close to 4 euros per share. If he passed it, he could even correct his positions even more and could even visit the surroundings at 3 euros, its lowest level in recent years.
Inditex would also notice it
Although to a lesser extent, Inditex would not fare well in this new scenario in the European order either. Because we cannot forget that the clothing chain has many open centers in the main English cities and therefore it would not be immune to this measure. While on the other hand, Inditex may notice the decline in tourism in the country, where has more than 100 shopping centers. Although it is also true that diversification presides over its commercial and business strategy. With a very high presence in almost all areas of the world.
Although its impact on the stock market would be less, it is not appropriate to underestimate this possibility, which would bring further cuts to the textile company. In a few moments in what is being played be in one or another trend. With the equity markets against their interests, as has been shown in recent trading sessions. In any case, you will have to be very attentive to the evolution of their prices in the financial markets. Given the possibility that he may be a new victim of the United Kingdom's departure from the European Union.
IAG the most affected
But if there is a value that can come out of this scenario very badly, that is without a doubt the European airline. Because IAG in a certain way is trading with this variable that can happen in Great Britain. With an undoubted exposure to currency risk, more taking into account that the estimates place a depreciation of the pound up to around 1,23 or 1,24 against the US dollar. Furthermore, if IAG has not performed better in the equity markets, it has been precisely for this reason. That undoubtedly has come to alienate a good part of its small and medium investors in taking positions.
It would be one of the values that could fall the most in the financial markets and who knows sim to return to quote in levels close to 5 euros. Faced with this worrying scenario, the best investment strategy with this value is to be absent from your positions. Even as if it appreciates in the next few days as it could be a tremendous bearish trap. It is a value where there is no doubt that you have more to lose than gain and this must be taken into account so as not to make mistakes from now on. Because you can pay very dearly.
Strong presence of Ferrovial
It is also worth mentioning that Ferrovial has obtained almost 20% of your UK revenue. It controls a significant stake in Heathrow Airport and 50% of Southampton, Aberdeen and Glasgow. Therefore, it is logical to understand that it would be another of the values affected by the foreseeable exit of the United Kingdom from the European Union. Where you plan to make new contracts in this territory. And all being one of the most bullish bets within the selective index of national equities. But in any case, very exposed to this social fact that can weigh down their business accounts from the next few quarters.
While on the other hand, it cannot be forgotten that this builder would be very sensitive to a possible impact of currency risk. It would be another of the factors that would have against from now on. And what could take you that your price cuts were very deep. Not surprisingly, it is one of the companies that have appreciated the most in recent years. Without undergoing hardly any corrections in the conformation of their prices. It is another of the financial assets to watch out for in this scenario that opens up in Great Britain.
Expansive movements of Sabadell
Banco Sabadell has put the Anglo-Saxon country at the center of its business strategies and can pay for this if the United Kingdom finally leaves the European Union. Anyway, and unlike the other values mentioned in this article, this financial group is the one that worst technical aspect has of all. To the point that it has gone to levels very close to one euro unit. In this sense, it can be said that it has been seriously punished by small and medium investors. And therefore the falls could not be very intense from that moment on.
Although due to its current situation on the stock market, it is not a security that is the subject of our stock market operations. If not, on the contrary, we must be absent from any movement that may harm our interests in the investment sector. Because as it trades below the euro unit, it will take a lot of effort to break out of those levels. Where you can lose a lot of money in operations. Whatever your bias with respect to its short-term trend.