IBEX 35 – Latest Outlook on Spain’s Benchmark Stock Market Index

The IBEX 35 (Iberian Index) is a free-float market capitalisation-weighted index. It was launched in 1992 and has since has become one of the most closely watched indices in Southern Europe.

The IBEX 35 is a benchmark index of the top 35 listed companies in Spain. The companies are listed on the Bolsa de Madrid, The Madrid Stock Exchange.

IBEX 35 Price, Chart & Latest

The IBEX 35 is a benchmark stock market index that tracks the performance of the 35 most liquid Spanish companies listed on the Spanish stock exchange. Those names are listed on the Electronic Stock Market Interconnection System (SIBE) in the four Spanish stock exchanges: Madrid, Barcelona, Bilbao and Valencia.

The index includes a diverse array of companies across various sectors, making it a key indicator of the overall health of the Spanish economy. The IBEX 35 is particularly attractive to investors seeking exposure to Spain’s leading corporations, which are often leaders in their respective industries.

The IBEX 35 provides a broad representation of the Spanish market, reflecting the performance of Spain’s most prominent companies. The index covers sectors such as banking, telecommunications, energy, and construction, making it a vital barometer for the country’s economic performance.

IBEX 35 Price Forecast

The future performance of the IBEX 35 Index presents both potential opportunities and challenges. The index is highly sensitive to Spain’s economic conditions, with various factors potentially influencing its trajectory. Here are the bullish and bearish arguments: 

Bull Argument: The IBEX 35 includes some of the most solid and influential companies in Spain, many of which have a strong international presence. A recovering economy, increased consumer confidence, and strong corporate earnings could drive the index higher. In May, Fitch revised up its 2024 GDP forecast for the Spanish economy, stating that “private consumption is likely to perform somewhat better than we had anticipated in 2024.” The firm added that its outlook on Spain’s industry has improved. 

Meanwhile, in July, Eduardo Faus, an analyst at Renta4Banco, said the IBEX 35  index “has been developing support at 10,800 points, where, as we have seen in recent weeks, it has been leaving readings of a probable technical rebound.”

Bear Argument: However, the IBEX 35 is not without risks. Factors that may weigh on the index include sluggish economic growth, potential political instability, and exposure to global trade tensions. Additionally, the energy sector’s vulnerability to fluctuating prices and regulatory changes could negatively impact the index.

Furthermore, tourism, according to CaixaBank, tourism GDP will account for 13% of Spanish total GDP in 2024. Therefore, any factors impacting tourism in the country could hurt the Spanish economy and, as a result, the Spanish stock market.

Who Should Buy IBEX 35?

As with any investment, it is important that the investor makes sure it fits their criteria and characteristics. The IBEX 35 may be particularly appealing to certain types of investors:

Spanish Market Bulls: Those who are positive about the Spanish economy’s trajectory may want to look for an index fund tracking the IBEX 35 as it may be an attractive choice.

Blue-Chip Stock Investors: The index includes well-known, reputable companies. As a result, investors looking for stability and growth potential may want to assess the index further.

Risk Tolerance: While the IBEX 35 offers exposure to some of Spain’s largest and most stable companies, it also comes with risks tied to broader economic and political uncertainties. A moderate to high-risk tolerance is advisable.

Timeframe: The IBEX 35 is well-suited for long-term investors who believe in Spain’s economic resilience and growth potential. For example, between 2009 and 2019, the Spanish IBEX returned 38% (excluding dividend returns).

Financial Stocks: The financial sector has a dominant influence on the index. Therefore, those bullish on Spanish financial stocks, may want to assess the index further.

IBEX 35 Top 10 Companies 

The Spanish Stock Market announces changes to the IBEX 35 every six months, usually in June and December.