Blue Chips Drag Market Lower
May 17, 2011
The Madrid General Index fell 2.69 to 349.32, after losing 2.44 on Tuesday. Volume rose to 36.42 billion pesetas from 34.16 billion pesetas Tuesday with 12.70 million shares traded. Traders said a lackluster session in U.S. stocks also damped trading in Spanish stocks. The IBEX-35 index of the 35 most liquid stocks on the Madrid Stock Exchange lost 37.78 to close at 3966.22, below its technical support level of 4,000.00. Among specific shares, Gas Natural fell 2,380 pesetas to 21,580 on volume of 284,323 shares. The share came under pressure after the government confirmed it will lower the allowable annual increase in the price of natural gas sold for home consumption to 1.5% beginning this month, and reduce the maximum price by 0.5% in 2013. The price increase ceiling was lower than expected and prompted analysts to revise downward their estimates for Gas Natural's group net profit in 2012, since the government estimates 2012 inflation at 3%.
