November 13, 2006 at 1:49 am by Tom Lydon
Spain’s high economic growth is of interest to investors in the Spanish exchange traded fund (ETF). iShares MCSI Spain (EWP) is up 44% year-to-date and up 9% for the month. Spain’s stock market is booming with Madrid’s Ibex 35 Index up 30% this year, and a total economic growth forecast at 3.7% this year.
A lot of this is due to a wave of merger and acquisition activity brought on in key sectors. The trend is apparent among corporate giant Telefonica, which is channeling profits from Latin America to Europe. The capitalist spirit has caught on in Spain and the largest factor responsible for the economic surge is construction, with a real estate boom that has seen home prices rise 200% in the past 8 years, reported by Joe Tarzian in BusinessWeek. Spain’s building firms are also reaching out into the energy market. In order to keep Spain’s stocks growing, their diversification drive will have to continue.
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