The bearish wave has been primed with everything that was quoted with more 'expensive' prices. The more defensive profile adopted by investors gives greater relevance to attractive valuations, and on this point the Ibex comes out especially favoured.
Double-digit losses are widespread among the main national stock market indices in the eurozone. The German Dax, the French Cac and the Italian Mib exceed 10% declines so far this year and are around 15% in the Dutch Aex.
At the gates of completing the first five months of the year, the Ibex is the eurozone index that is best coping with the prevailing wave of sales in 2022. The Spanish selective index stands out with a practically flat balance so far this year .
It is not the only variable in which it stands out at European level. The Ibex also leads another section closely related to its best performance so far this year. It is the cheapest in terms of PER, the number of times the net profit is contained in the listed price. Sectors with a higher P/E, such as tech, and assets with high valuations, such as cryptocurrencies, have seen the biggest routs of investors in recent times.
The Ibex, despite presenting a much less unfavorable balance than the rest of the European indices, trades with a PER of 8.92 times, the lowest, by far, among the main European national indices, according to Refinitiv data.
The PER rises to 10.27 times in the Italian Mib, 11.60 in the French Cac, and 12.58 in the German Dax.
One of the indices adopted as a reference at the European level, the Stoxx 600, trades with even higher multiples, with valuations of 13.00 times its earnings.
The sectoral composition of each index is key, and the Ibex, with a reduced weight of technology stocks, has in recent months taken advantage of the high weighting of its stocks with a more value-oriented investment profile.
The beginning of the rate hikes unleashed a deep rotation from the values most linked to growth (growth) towards the 'value', and the current context has as maximum exponents of this trend the collapses suffered by technology companies in the face of the best behavior of banks and oil companies.