Spanish equities saw a total trading volume of €42.011 billion in June , a 4,6% increase compared to May. However, trading volume fell by 26,1% in the first half of the year. Meanwhile, the number of trades in June was 2,8 million, down 6,8% from the previous month and 27,9% from June 2018. On the other hand, the financial derivatives market saw a 10% increase in trading volume during the first six months of the year compared to the same period last year. This comes at a time when uncertainty is growing among small and medium-sized investors.
In this regard, Bankinter's analysis department points out that "in recent months, following the gains of the first few months of the year, we have entered a more sideways phase in which we will experience periods of decline (like in May) and months of gains (like this past June)." They also note that at the moment, "we are experiencing a lack of major catalysts, and yet there are no signs of deterioration that would lead us to believe that the economy may enter a more or less imminent contraction."
Looking ahead to July and August, and given the typical decrease in trading volume during these months, we shouldn't worry if profit-taking occurs in the stock markets. In fact, we should see it as an opportunity to rebalance portfolios or even make some purchases. To do this, it will be necessary to reorganize and, in a way, adjust our stock portfolios for the last five months of the year. This period is likely to see more volatile movements in equity markets than in the first half of the year, with a number of stocks offering very attractive potential for appreciation, allowing small and medium-sized investors to grow their savings.
Portfolio of securities: which ones to include
Within this general context, these days should be used to choose the investment strategy we want for the coming months, and especially as we look ahead to the end of the year . Furthermore, we mustn't forget that this is a good opportunity to adjust our investment portfolio for the final months of the year. This strategy could include Banco Santander after the sharp decline it experienced in the first half of the year, which saw its share price fall to around €4. Since then, it appears to have reacted with significant and interesting buying pressure.
While it's true that the technical outlook for the banking sector is far from positive, a brief analysis of the Botín family's financial institution is worthwhile. It's important to remember that it's currently the safest bank and the one with the best chance of recovering from this point forward. This is true beyond other technical considerations and perhaps also from a fundamental perspective. Furthermore, it offers a dividend yield estimated at around 5,5%, higher than that offered by many of the stocks comprising the Ibex 35, Spain's benchmark stock index.
Telefónica may surprise
The national telecom company has a significant debt, which has prevented it from performing better in the equity markets. However, trading at levels close to €7, it has potential for growth if the investment horizon is medium to long. It is almost certain that within a few years it will surpass the €8 mark per share. From this perspective, it could be one of the most profitable stocks on the Spanish stock exchange if the entry price is carefully chosen. Nevertheless, uncertainty may persist regarding its price movement in the coming days or weeks.
Another of its main incentives is the attractive dividend it distributes to its shareholders. With a yield very close to 6%, it's among the highest dividend payouts for companies in the Ibex 35. Furthermore, it's highly unlikely that its share price will fall any further from its current level. This is more than enough reason to hold it in your portfolio during the second half of this year, even though its share price may exhibit unusual volatility , given that it's one of the major blue chips in the Spanish stock market.
Take advantage of cuts in Naturgy
The electricity company has shown the most intense bearish trend in July, with its price depreciating by more than 10% , a significant drop for a company of this type. This follows a remarkable upward surge in the first half of the year that propelled it to a period of unrestricted growth. Currently, this sharp decline presents an opportunity to buy shares, as its potential for appreciation is greater than before. However, it remains to be seen how far the current selling pressure, which is causing so much concern among small and medium-sized shareholders, will go.
In any case, it has the advantage of being one of the listed companies that offers the best dividends to shareholders. With a yield for the coming years that could reach very close to 7%, it ranks among the top performers in the selective index of Spanish equities, which is more than enough reason for more defensive investors to buy shares at this time of year. This is despite its severe depreciation, which has surprised many investors. It truly wasn't expected, but it should be viewed positively as the shares can now be bought at a lower price.
Amadeus always very stable
If you want to avoid too many surprises this time of year, this stock is highly recommended for making your savings grow from now on. Its connection to the tourism sector works very much in its favor, allowing you to build savings for the medium and long term. However, in this case, the dividend payment is quite modest compared to other Ibex 35 companies. In other words, it shouldn't influence the decisions of small and medium-sized investors when building their next investment portfolio.
Meanwhile, the stock continues its upward trend, suggesting that entering positions is not an overly risky operation. Furthermore, it's worth mentioning that Amadeus and Etihad Airways today announced an extension of their long-standing collaboration for multi-channel distribution services. This collaboration is governed by the renewed agreement facilitated by the Arab Air Transport Organization (AACO). Within a stock market sector showing strong fundamentals, there is continued confidence in entering positions from this point forward.
IAG based on the price of crude oil
Another Spanish equity worth considering is IAG. However, this decision hinges on how oil prices perform in the financial markets. If there is a rebound, then IAG will undoubtedly be a must-buy stock. There's no doubt about it, and it's currently trading at a very competitive price, which could make it easier for investors to buy. Beyond that, other technical aspects will be covered in future articles for a more complete understanding.
Furthermore, it's worth noting that this stock offers one of the best dividend yields for small and medium-sized investors. With an average yield of around 7% , it's an attractive option to open positions starting in the second half of the year. This is because the return on savings is guaranteed in the coming years, regardless of what happens in the domestic stock markets. There's also the added possibility that its share price could reach levels above €8, provided it's supported by a rise in the price of crude oil.
As you may have seen, there are a series of values that are more suitable than others for this part of the year. Where they can do better than the rest and that in most cases are accompanied by a good dividend yield. So that you can make your savings profitable in an adverse scenario for the financial markets in the coming months. As long as it is supported by an increase in the price of crude oil.