2013/05/26

Catalan companies quoted in the Stock Market


This report analyzes the different evolution of the IBEX35 with the index of the stock market in Barcelona Indexcat (aggregate index of companies based in Catalonia).
Catalonia accounts for 16% of Spain's population and 20% of its GDP.  However, the trading volume for the stock market in Barcelona is 28% of the Spanish total.

The manufacturing sector and consumer goods in Indexcat amounts to almost half of the companies (48%) while in the IBEX35 is only 19%. This is mainly due to the fact that in the IBEX 35 what have more importance are the former telecommunications and energy monopolies.

This difference in the distribution of companies in the IBEX35 and Indexcat gives us an idea of ​​the different structure existing in Catalonia, based on industry and support services to the industry, as opposed to the existing structure in Spain, mainly based on services of low added value.

As for the performance of the two indexes in the last period of economic growth (2001-2008), Indexcat revalued by 32%, while the IBEX 35 did so by 15%.Comparing the evolution of the crisis, the Indexcat has maintained a much more favorable evolution than IBEX 35. In 2012, Indexcat achieved a revaluation of 8.9% while the IBEX35 index lost 1.2% (+3% i -7,7% respectively in the first months of 2013).

Another section discussed in the study is the cost of opportunities for Catalonia, who is forced to issue government bonds due to the existence of the fiscal deficit. This smaller investment in productive sectors of the Catalan economy makes Catalan companies and the country in general lose growth potential.

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