When we talk about how the markets are doing throughout the trading session, we normally refer to the DAX, the FTSE or the S&P 500. However, this does not mean that they are the only market indices out there.
An index worth looking into is the IBEX which is an index covering the Spanish market. With Greece put on the back burner (for the moment) and positive economic data coming out of the Eurozone, investors are putting risk back on the table.
An index investing in peripheral Europe will give that extra kick to a portfolio’s performance as positive momentum builds up in equity markets. You can get exposure to the IBEX index via the Lyxor ETF IBEX 35 (ticker: LYXIB SIM EQUITY). The index delivered a total return of 15% year-to-date.
It’s beneficial to get exposure to Spanish equities through an ETF because it helps mitigate risk through diversification amongst the constituents within the ETF itself as well as with other stocks within the portfolio.
The top 10 performers year-to-date (YTD) are as follows:
1. Gamesa Corporacion Tecnologica, S.A. (+119% total return YTD)
Gamesa manufactures wind turbines. The Company also develops and markets wind farms.
2. Abengoa S.A. (+58% total return YTD)
Abengoa is an international company that applies technology solutions for sustainable development in the energy and environment sectors. The Company's technology generates electricity from the sun, produces biofuels, desalinates seawater and recycles industrial waste.
3. Indra Sistemas, S.A. (+37% total return YTD)
Indra Sistemas offers information technology products and services. The Company offers systems integration and outsourcing services, installs railway management and ticketing systems, installs road traffic toll and signalling systems, constructs satellite communications systems, manufactures radar air defense systems, and installs insurance management systems.
4. Acciona S.A. (+37% total return YTD)
Acciona is a global developer and service provider of solutions in renewable energy, large civil infrastructures and water treatment and reverse osmosis desalination. The Company has sustainable development at the heart of its strategy.
5. Industria de Diseno Textil, S.A. (+33% total return YTD)
Inditex designs, manufactures, and distributes apparel. The Company operates retail chains in Europe, the Americas, Asia, and Africa.
6. Ferrovial S.A. (+34% total return YTD)
Ferrovial is an infrastructure operator and industrial company. The Company operates in multiple countries in a range of sectors including construction, airport, toll road, and municipal services. Ferrovial also has a services division in which they provide facility management, infrastructure maintenance and upkeep, and energy and waste management services.
7. International Consolidated Airlines Group S.A. (+31% total return YTD)
International Consolidated Airlines provides international and domestic air passenger and cargo transportation services. The Company and its subsidiaries serve Europe, the Americas, Africa, Asia, Australia and the Middle East.
8. Sacyr S.A. (+27% total return YTD)
Sacyr offers construction services, operates concessions and develops and rents real estate in Spain. The Company develops housing, office buildings, factories, shopping malls, hotels and retirement homes, offers building maintenance services, and administers and markets real estate.
9. Mediaset Espana Comunicacion S.A. (+27% total return YTD)
Mediaset Espana Comunicacion, a television broadcaster, conducts television, cinema and music production operations. The Company owns and operates the Spanish television station Telecinco as well as media and advertising companies.
10. Tecnicas Reunidas S.A. (+25% total return YTD)
Tecnicas Reunidas offers engineering and construction services. The Company primarily designs and constructs a variety of industrial plants as well as power.
Disclaimer: This article was issued by Kristian Camenzuli, Investment Manager at Calamatta Cuschieri. For more information visit, www.cc.com.mt . The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri & Co. Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.