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The participation of retail investors (households) as owners of shares listed on the Spanish stock exchange in 2008 slightly increased by 1% in 2008 for the previous year to 20.2%, according to the 2008 Report on share ownership in Spain, published today by BME’s Research Department.
The report also reflects an across-the-board reduction in the weight of the financial sector (banks, saving banks, investment and pensions funds and insurance companies) and a significant increase in the weight of foreign investors to its maximum level since records started. Another trend observed is a modest rise in the presence of non-financial firms.
In 2008, retail investors (the households sector) increased their participation by 1% compared to the previous year to 20.2%. Following the sharp correction suffered in 2007, retail investors, on aggregate, maintained their equity investments against the backdrop of changing market conditions that took place in 2008. According to the latest report on share ownership in Europe, published by the FESE and which was made using data for 2007, the participation of retail investors in equities in Spain continues to be significantly higher than the European average and based on the figures published today, the same situation will remain when the report is made with figures for 2008.
The aggregate value of the participation in Spanish listed stocks from the financial sector (which comprises banks, saving banks, investment and pension funds and insurance companies) stands at 15% of the market capitalisation at end-2008, 2.6 basis points below that at end-2007 and 8 basis points below the record high posted in 1997. According to the report, "the loss of relative participation throughout 2008 shows the significant net divestments carried out by Spanish financial institutions to deal with the deep liquidity crunch".
The loss of relative weight of the domestic financial sector has been compensated for, above all, by foreign investors, who significantly increased their participation in share ownership. A proportion of 38.5% of the value of Spanish listed companies is in the hands of foreign investors, the highest percentage since 1992, when these statistics started to be collected. The participation of foreign investors has always excceded 30%, reflecting the integration of the Spanish economy into the international arena and the confidence of investors in the Spanish market. "This effect is a consequence of the purchase of heavily capitalised Spanish companies by foreign ones, such as was the case with Spanish utility Endesa, which was acquired by the Italian Enel", according to BME’s Research Department’s report.
Non-financial firms also increased their relative weight in terms of ownership of shares listed on the Spanish stock market. At end-2008 this proportion came in at 26%, a record high since 1992, following a steady increase in the last few years due to cross-shareholdings between listed companies, even from different sectors.
Further information on:
http://www.bolsasymercados.es/esp/publicacion/revistaOnLine/index.htm
