The first month of the holiday season concludes, in the absence of a single session, with the rise of the real estate sector and basic resources in Europe, which have been favored by an environment of rising inflation and the improvement of the economy.
Investors continue to bet on cyclical companies, such as steel companies, in a context that has also benefited real estate firms. This is the case of Acerinox, ArcerolMittal, Colonial and Merlin, which found a niche in the most bullish group of the Ibex 35 in July.
In fact, the basic resources industry is not only crowned as the best performing industry in the month within the Stoxx 600, with a rise of 9.7% , but it is also the favorite in 2021 with a rise of 28% . In the case of the real estate sector, which had been further behind in the year, July has served as a boost, since it is the second most bullish in Europe with an advance of 6.1% , 13% in 2021.
The leadership of the steelmakers
Precisely, ArcelorMittal is the third star company within the group of companies that work with basic resources in the Stoxx 600 in this period, with a monthly advance of 14.3% , only preceded by Anglo American and Swedish Holmen.
The largest steelmaker in the world also manages to win the title of the most bullish in July on the Spanish market . An evolution that follows the line of its positive annual background: it draws a rise of 55% that also makes it the third most bullish in 2021 in the national index.
To crown a fantastic month of July, Arcelor surprised yesterday with the presentation of its first half results, the best since 2008 . In addition, “the company announces a new buyback of 1,000 million dollars (2.6% yield) until the end of the year, which would raise total remuneration to 6.4%”, Sabadell analysts underline.
Another of the winners of the month is its partner Acerinox . The steelmaker stands out in the Spanish benchmark index as the third firm with a more positive evolution in July, since, in the absence of a day, it recorded 13.8% in this time . And, like Arcelor, it put a finishing touch to the month by announcing, on Thursday, first-half results that confirm the trend that it is on track to close its best year since 2007 .
“Acerinox mentions that the third quarter should be better than this quarter, which would mean that the 9-month ebit would be at least 595 million euros,” they explain from Sabadell. “This, together with the expected price increases and the good competitive environment in its two main markets, should lead to upward revisions by the consensus of more than 10%,” they say.
Both ArcelorMittal, as number one, and Acerinox, as number two, are the great leaders of the Ibex League , a combined one created by the Economist that classifies all the recommendations of the selective companies, ordered from best to worst according to a weighted average of FactSet and Bloomberg .
The impulse of the Socimis
Socimis also became one of the best companies in July, both Merlin and Colonial were among the most bullish on the Ibex 35 in recent weeks.
In Merlin, the monthly increase reached 7.8% and was worth the title of the sixth most positive value of the month within the Spanish selective. The firm also stands out in this year of recovery, as it is in eighth position on the market if we take into account its entire journey in 2021.
“Lost rentals may be replaced by the REIT’s logistics portfolio where new deliveries and renovations are driving the numbers,” notes a Bloomberg Intelligence report . “The profit forecasts for 2021 seem feasible on the result of the first quarter, and a reactivation is not expected until the fourth quarter,” he concludes. Colonial , for its part, is the eighth company that increased the most in July, registering 7.6% and thus increasing its annual increase to 14%.
Within the same real estate sector, the promoters also register a good month. In the case of Aedas Homes, the advance is 10%, while Neinor Homes scores an increase of around 8%. In both cases, the monthly increases pushed them to levels that had not been seen since 2018. Metrovacesa , for its part, has advanced more than 5% in recent weeks.
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