The turbulences of the Turkish lira again take their toll on BBVA in a bag. The entity’s shares lost more than 5% at this start of the week, dragged down by the Turkish currency crash after the dismissal of the governor of the Central Bank of that country, Naci Agbal, and lead the falls in the Ibex 35.
The falls have reached over 7.5% in the first bars of the session after a troubled early morning in Ankara. The lira has fallen by 15% during the morning after hearing the news of the dismissal of Agbal by the president, Recep TayyipErdogan. This is the second change of governor in the institution in the last five months, something that sends a signal of very negative instability for the markets and calls into question the independence of the country’s central bank.
Forecasts point to the new governor, Sahap Kavcioglu, it will apply a looser monetary policy and could launch a rate cut that would make it difficult to control inflation in a country that has one of the highest rates in the world.
This scenario could have consequences for the entity chaired by Carlos Torres, for which Turkey represents the third most important country through Garanti. Their shares this Monday stood at 4.4 euros and lost part of the comeback that they had carried out since the beginning of the year and that had made BBVA one of the best performing stocks on the Ibex 35.
Despite this, analysts call for calm. From the Renta 4 team, for example, they consider that “the negative reaction of the price despite the fact that the impact on capital to movements of the lira they are limited and that the impact on the income statement and valuation does not exist given that the estimates taken into account are somewhat more negative on average for the year compared to the current levels of the Turkish lira “. In their daily report they recommend” keep “BBVA in portfolio with a target price of 4.61 euros.
The bank leads the falls in the main stock market index this Monday, where the rest of the banks and the main tourist stocks are also suffering from the latest data that indicates an increase in contagions at the European level.
The air conglomerate IAG almost 4.5% is also left, followed by Colonial (-2,8%), Amadeus Y Sabadell Bank, both with setbacks above 2.3%. On the other hand, barely half a dozen stocks save the green in these first hours of trading, led by Siemens Gamesa, which rose almost 1.2%.
Overall, the Ibex 35 fell almost 1.3% and fight to regain 8,400 points. Red is also the color in the rest of European squares, although its falls are less than in Spain. At the start of the day, the Dax in Frankfurt lost 0.49% and the Cac 40 in Paris 0.89%, while the London Ftse 100 fell 0.68%.
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