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- More than 64% of sales of IBEX 35 companies in 2014 originated outside Spain, almost double those twenty years ago
- In 25 out the 111 companies analysed, the share of foreign sales tops 80%
- The companies that make up the Ibex Medium Cap boast the highest percentage of sales generated abroad, at 65.86%
- At present, shares of listed companies on the IBEX 35 are in the portfolios of 8,700 global funds
- Foreign investors account for near 82% of share trading, compared to 60% less than a decade ago
- In the last two years net foreign investment in listed Spanish companies approached €8 billion per year
The Madrid stock exchange today hosted the presentation of the 2015 Report “International position of Spanish listed companies”, promoted by Telefonica and BME. The Spanish Secretary of State for Trade, Jaime García-Legaz Ponce, and Antonio Zoido, Chairman of BME, gave an address during the opening.
The Report highlights the importance and influence of companies listed on the stock exchange on the great momentum abroad shown by the Spanish economy. This growing phenomenon has increased in the last 25 years. The interpretation of facts and figures leaves little doubt as to the expansion potential for capital and businesses offered by a modern and efficient stock market with companies that are capable of turning their listing into the best tool to boost their expansion projects. Proof of this is the great presence and international leadership shown by a number of listed Spanish companies on the international economic and social scene.
Spain is the 14th largest economy in the world by GDP. This position improves significantly in terms of its projection abroad in terms of the flows of trade and investments flowing into and out of Spain. Listed companies, especially large multinationals, but not only them, are the spearhead of a process that remains today and should continue making progress.
Foreign sales of listed companies in 2014 was close to two-thirds of the total.Thus, 64% of the total turnover of companies in the IBEX 35 originated outside Spain, ie €264 billion out of a total of €412 billion. The percentage is almost double that recorded twenty years ago and 17% higher than that recorded in 2007.
In 25 out the 111 companies analysed, the share of foreign sales tops 80%. The companies that make up the Ibex Medium Cap boast the highest percentage of sales generated abroad, at 65.86%.
Today, shares of listed Spanish companies that are part of the IBEX 35 are in the portfolios of nearly 8,700 global funds. In March 2015 this participation represented €113.5 billion, 16% of the total capitalisation of the companies listed on the Spanish stock market.
US institutional investors are the main foreign shareholders of the IBEX 35 index, with €36.5 billion in 1,293 funds. British investors are next with €18.9 billion in 926 funds and after them come the French investors with €16.8 billion in 888 funds.
In 2014 six Spanish stocks accounted for 23% of the effective volume traded by all the companies in the EURO STOXX 50® index. This proportion is much higher than it should be based on their capitalisation on this index (13.2%) or than that represented by the Spanish GDP in the Eurozone (10.8%). Santander, Telefónica and BBVA are by far the EURO STOXX 50® most heavily traded constituents in the 4 years from 2011 to 2014. Repsol is the 8th, Iberdrola the 16th and Inditex the 17th. The 6 combined represent a trading volume close to 2 times the Spanish GDP (€2.2 trillion) in the period.
Foreign investors account for near 82% of share trading, compared to 60% less than a decade ago. In the last two years net foreign investment in listed Spanish companies has been close to €8 billion per year.
One of the purposes of this Report is to emphasise a fact: internationalisation and company size are variables that are continually fed. In this sense the share price of businesses in the securities markets adds value. Their gaining outside exposure is perhaps one of the most significant and measurable variables of the process.
Spanish listed companies are a group representing 0.1% of all domestic companies and their market value represents about 40% of their overall value. They are a small group of enterprises in relative terms, but as stated in the Report, they boast an outstanding international position by size and participation in its their global becnhmark sectors. Their data are an expression of the positive effects of the fruitful relationship between companies and stock markets.
Telefonica and BME, which have promoted the Report, with their long-time experience can serve as a paradigm and endorsement of this prolific relationship between companies and markets. The former has been listed on the stock exchange for 90 years and BME will in 2016 celebrate its 10th year as a listed company. Both institutions are at the forefront internationally in their respective sectors.
The international opening of the activity, financing and capital of the Spanish companies is a must to ensure the formation of a new model of economic growth and employment that is less vulnerable, more diversified and solvent in adverse cycles.
The complete report, available only in Spanish, can be found at:
http://publicaciones.bolsasymercados.es/otras/ipice2015/index.html
