The Ibex 35 has reached 1.2 trillion euros in capitalisation and has appreciated by 123% in five years, significantly outperforming indices such as the S&P 500 and Eurostoxx.
The Ibex 35 closed June with a total capitalisation of 1.2 trillion euros, 123% more than five years ago, when the index was at 8,700 points during the pandemic. The accumulated return doubles that of the S&P 500 (71%) and triples that of the Eurostoxx (53%), according to market data.
Banco Santander, with a capitalisation of 177 billion, has surpassed Inditex (173 billion) as the most valued Spanish company. It is followed by Iberdrola (144 billion), BBVA (129 billion), and Caixabank (91 billion). These five companies account for nearly 60% of the total value of the Ibex 35.
The bank chaired by Ana Botín also marks a milestone: it is the largest company in the entire eurozone by market capitalisation. Its quarterly results have set historical profit records, driven by rising interest rates and strong performance in key markets such as Brazil and Mexico.
The geopolitical context has not hindered this rise. The Russian invasion of Ukraine in February 2022, the war in the Middle East, and trade tensions between the United States and China have not prevented investors from betting on major Spanish stocks, especially in finance, energy, and construction.
Central banks are maintaining a cautious interest rate policy, while governments are adjusting their accounts in light of high public debt. The European Union has redirected part of the Next Generation funds towards defence and security, a shift that benefits companies with dual production capabilities, from footwear to anti-drone protection networks.
Despite tariff threats, the rise of the far-right in Europe, and the uncertainties generated by Donald Trump, the Spanish economy has fared better than expected. Inflation has been lower than forecasted and growth has remained above the eurozone average.
For individual investors, the lesson is clear: betting on the Ibex 35 over the past five years has been a very profitable venture. However, experts remind that current prices reflect expectations of future profits. If those expectations deteriorate, the trend could reverse.
One relevant detail: none of the five largest companies in the Ibex have their tax residence in Madrid. Santander is based in Santander, Inditex in Arteijo, Iberdrola in Bilbao, BBVA in Bilbao, and Caixabank in Valencia.
The next milestone to watch will be the publication of second-quarter results, which will begin in mid-July. Analysts expect Santander, BBVA, and Caixabank to break records again, while Inditex and Iberdrola will maintain more moderate growth.
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