Spain's `Glorious' Stock Market May Lag Behind Rest of Europe - by Sharon Smyth
Spanish stocks, the best performers among 18 Western European markets in the past year, may be a victim of their own success. Spain's equities have benefited from faster economic growth than Europe overall, record low borrowing costs and a surge in takeovers. The IBEX 35 Index gained 31 percent in the past 12 months. Metrovacesa SA, Spain's biggest property developer, and Sacyr Vallehermoso SA, its fifth-largest construction company, led the gains.
Now share prices are more expensive than those on the rest of the continent, a turnabout from the beginning of Spain's rally four years ago. Spanish shares will lag behind regional peers this year, according to Juan Mesa of Credit Agricole Private Bank and strategist Karen Olney at Merrill Lynch & Co.
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