- The securities markets, the Central Counterparty and the Central Securities Depository have continued to function with absolute normality during the pandemic
- The Ibex 35 had its worst session ever this year, losing over 14% on March 12th, but also its best month in November (+ 25%) since its creation
- The transformation of MAB into BME Growth and the consolidation of MARF as a financing alternative for all types of companies, important milestones of the year
- The Chairman and the CEO of BME highlight the progress made in the integration of BME and SIX, which has created the third largest European exchange group
Today BME has published the 2020 Market Report, which summarises the main developments that have taken place in the Spanish securities markets during the year. Jos Dijsselhof, Chairman of BME, and the CEO, Javier Hernani, presented the main conclusions of a year marked by the Covid-19 pandemic and the announcement of the vaccine as well as the integration of BME into the SIX Group.
Jos Dijsselhof stated: “I am convinced that together, BME and SIX, we are well positioned for the challenges we face for the coming months as the third largest market operator in Europe, and we will take the company even further”
In his speech, Hernani highlighted that the securities markets, the Central Counterparty and the Central Securities Depository have continued functioning with absolute normality during the pandemic, which has brought about transparency, liquidity and security. "In times of so much uncertainty, both investors and companies have benefited from the advantages of financial markets and the social role of the markets has become even clearer in this context," he said. In this sense, the investment flows channeled to the stock market increased by 4% during the year, "which confirms that the markets have been there and are there when companies need it".
Stock markets experienced a hectic year, going through their worst session in history in March, but also posting the highest monthly rise in November, once the effectiveness of the vaccines become known. So far this year, the IBEX 35 © shows a decrease of around 15%, with a 51% increase in the number of trades to 51.2 million. In this context, the banking sector, traditionally the one with the heaviest weight in the Spanish market, now ranks third by market capitalisation, after losing its position to new companies, as a result of the transformation of the productive model, more focused on renewable energy and with a greater digital component.
One of the milestones of the year was the transformation of MAB into BME Growth after it obtained the European SMN Growth Market seal, thus boosting the internationalisation of this market.
BME Growth has attracted 9 new companies. In total 59 financing operations were executed, which made it possible to attract new funding worth 383 million euros.
The REITs, which in recent years have revitalised and professionalised the real estate sector by providing it with greater transparency, distributed 635 million euros in dividends among their shareholders.
Financial markets are open to companies of all sizes and profiles. Proof of this has been the incorporation of Cuatroochenta from the Pre-Market Environment, in October.
It has also been a very important year for BME’s Fixed Income market, MARF, especially after being selected to channel a guarantee line from Spanish state-owned bank ICO to respond to the Covid-19 crisis. This BME market sees out the year with an outstanding balance of 5.3 billion euros through which more than 80 companies raise finance.
The growth of sustainable investment from both issuers and investors was another highlight of the year. In Spain, over the last decade, public and private issuers have launched green, social and sustainable bonds worth 40 billion euros.
The Financial Derivatives markets will close the year with a 29% increase in their trading volumes, favored by a greater presence of retail investors. Equity clearing transactions increased 48.9% and the open interest in repos increased to over 14 billion euros at the end of November, while Cross-Border Services’ balances of securities under custody increased four-fold, to 21.8 billion.
Access to the 2020 Market Report (available only in Spanish) and the speeches by Jos Dijsselhof and Javier Hernani: