There will be no purchases from Spanish companies as a consequence of the volatility of the markets. The Executive of Pedro Sanchez has reformed the regulations on foreign investments to prevent companies from countries outside the European Union can take control of Spanish entities in strategic sectors. This is one of the great requests of national companies before the high volatility that has been experienced in the markets in recent days.
Sanchez, in the press conference after the council of ministers in which the measure was approved, recalled the “extreme volatility” that the financial markets live and that has caused the prices of the companies to collapse in just a few weeks. These falls have become more than 60% in some listed companies if they are added in the last weeks.
The market has left tens of billions of euros in market capitalization and all this despite the different measures that have been taken from the regulator, the National Stock Market Commission. Specifically, the CNMV banned bearish bets for 30 days in Spanish listed companies, which made the markets return to Friday this Tuesday.
Several of the Spanish listed companies had demanded shares to the CNMV before the collapse of their titles in the last days. They then asked that it be tried to stop this bleeding that has erased with a stroke of the pen ‘billionaire’ capitalizations with an eye toward possible operations that could come from the US or an increasingly recovered China after having overcome the virus.
This measure is included in the Economic package that the council of ministers approved this Tuesday and that, among other things, will facilitate ERTEs Y will suspend contributions of companies that use this tool. In total, a mobilization of 200,000 million of euros in order to stop the economic shock of the virus.
After the announcement of the measures, the markets have accelerated and the Ibex rises more than 5% one hour after the end of the session. The securities that are experiencing the greatest growth are those that would be protected by this measure, such as Telefonica -up more than 14% -, Bankia -a 13% -, Masmovil -a 12% – or Iberdrola, whose green numbers are located by above 10%.