The Spanish stock market begins to recover part of the lost ground in the negotiation of its shares. After months of continuous flight to platforms that often remain out of reach of the most modest investors, the official markets operated by BME they manage to increase their share by 4% and thus their recent historical lows are shaken.
Although at the moment the recovery is limited, the turnaround after months of bleeding it is what is truly significant. In this sense, the data provided by the last quarterly bulletin published by the National Securities Market Commission (CNMV) indicate that throughout the second quarter of the year 53.7% of the trading on Spanish shares It was produced on the official platforms of BME.
When the hegemony of the official market began to be questioned according to the metrics managed by the supervisor, its absolute majority has been reinforced. And it is that only three months ago, according to data at the end of March managed by the institution, the weight of BME in the negotiation of Spanish shares was reduced to a hitherto unusual minimum of 51.6%.
The effect of volatility
One of the factors that has contributed to this strengthening of the official trading venues has been the volatility drop. The CNMV itself had pointed in recent months to the strong lurch in the price of the stock exchanges as the engine of this transfer of volumes. Currently, the supervisor describes the market scenario as “low volatility”.
This appreciation finds arguments in the VIBEX index, which measures the volatility of the Ibex 35 index. If a year ago its graph marked 24 points and at the end of the first quarter of the year it remained at 18 integers, now its value has been reduced to 14 points. A trend that discourages trading modalities such as algorithmic and high frequency (HFT), which tend to be executed on alternative trading platforms.
And that despite the small investors with a more opportunistic profile they continue to be the protagonists of a good part of the new registrations in many trading firms, as shown by several recently published studies. However, despite its growing role, equity trading fell in the second quarter of the year in the main European markets.
A decline that in the Spanish market meant volumes 9.5% lower than a year ago, when the second wave of the Covid-19 pandemic continued to stress the markets. Thus, between the months of April and June there were operations on Spanish listed companies for the equivalent of “just over 169,000 million euros”, according to the data handled by the supervisor.
With regard to accumulated data for the first six months of the year, the trading volume in the Spanish listed companies as a whole reached 347,000 million euros. This figure was 19.5% lower than the previous year, the 2020 of the pandemic.
This decline was even greater in the case of BME, whose platforms were only the place of execution of operations for 181,500 million euros. A level that represented 52.3% of the total and 22.3% less than until June 2020.
A setback that highlights the fragility of this recent rebound. And it is that investors continue to have to do with the added impact on your investment of the Tobin tax for the purchase of a large group of Spanish listed shares.