Banking Shares Represent Half of the Investments of Spaniards in the Ibex 35

The Ibex 35 recorded a good year in 2023. The Spanish selective closed with a rise of 22.7%, its best year since 2009. This good evolution is also reflected in retail investments, that is, those that citizens make directly and not through a fund. Therefore, the proportion of retail investment in total negotiated purchases stood at 7.4% compared to 6.2% the previous year. On the sales side, the ratio was 9.1%.

That is, according to data from the National Securities Market Commission, retail investors increased their interest in the Ibex 35. And above all they showed their interest in the financial sector. The CNMV survey shows that most of the securities traded belonged to the financial sector, which further increased its relevance to 49.1% of the total volume, compared to 39.3% the previous year.

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During last year, the volume of purchases by retail investors of Ibex 35 shares was 20.6 billion euros

This significant growth meant a decrease in the weight of the rest of the sectors, highlighting the drop in the energy sector from 21.4% in 2022 to 16.6% in 2023 and that of industrial companies, from 15. 4% to 12.6%. The communications sector was an exception to these generalized decreases by most sectors, since its share went from 5.4% to 6.3%.

This confidence in the financial sector is due, among other things, to the fact that it is a sector that has benefited from the rise in rates to 4.5%. The six banks listed on the Ibex 35 have recorded record profits and have performed well on the selective. Furthermore, it should be noted that they are securities with a large capitalization.

In fact, Banco Santander, BBVA and Caixabank are the third, fourth and fifth securities with the highest capitalization of the Ibex. It is worth highlighting the first two, whose stock market value is 61,000 million and 54,000 respectively.

Ibex 35 investors profile

The 2023 data reflects growth in the participation of retail investors within the equity market. In previous years, it was reflected how this had increased significantly with the beginning of the pandemic in 2020, and then decreased the following year. However, in 2022 it resumed a slightly increasing path, which was notably accentuated in 2023.

During last year, the volume of purchases by retail investors of Ibex 35 shares was 20.6 billion euros and the sales volume was 25.2 billion, which represents a decrease of 2.9% in the first case compared to 2022 and an increase of 5.5% in the second. These volumes, like last year, are lower than those recorded during the pandemic, but higher than those observed before it. In 2023, as in the previous two years, the sales position of retailers was once again larger.

According to CNMV data, in 2023 an event similar to the previous year occurred, and that is that the aggregate amounts of purchases decreased to a lesser extent than the number of operations carried out. The explanation lies in the same aspect, and is that the median volume of total operations carried out increased in most age groups, with the exception of the youngest group (from 18 to 34 years old). In this group, a median volume went from 2,000 to 1,871 euros, while in the other groups there were increases of around 300-400 euros for each age group.

In line with what occurred in previous years, the majority proportion of the volume traded in Ibex 35 shares continued to be carried out by men, although this decreased slightly (79.4% in 2023 compared to 81.1% in the year former). The percentage negotiated by women decreased slightly from the first to the second quarter and then grew in the following two quarters. In 2022 as a whole, its participation was 20.6%.

Regarding the average age of the investor, this continued, in the case of men, the increasing trend that began after the significant decrease that had occurred in 2020 due to the incorporation of a large number of young investors in the pandemic. In this way , the average age was 51.9 (51.6 in 2022). In the case of women, the average age remained the same as in 2022, at 54.8 years.

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(Featured image by Alex Azabache via Pexels)

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First published in EL INDEPENDIENTE. A third-party contributor translated and adapted the articles from the originals. In case of discrepancy, the originals will prevail.

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