Portfolio performance

Over the past week, the DIC portfolio has recorded a return of +1.19%, compared to +2.80% for the IBEX 35 and +2.29% for the EuroStoxx 50.

Highlights of the week

Notable gains: Bayer (+9.02%) after returning to profit (€137 million vs. -€2.217 billion a year ago), improved agricultural business, and reduced perception of financial risk thanks to progress in profitability and operational stability, and Global Dominion (+6.58%) rebounding after a weak month marked by poor results and downward revisions to estimates. In addition, IAG (+5.28%) regained momentum after last week’s decline, supported by expectations of a buyback program of up to €9 billion through 2027, a more positive reading of its results, and a strong competitive position in Europe. Finally, BBVA (+5.27%) advanced thanks to the strong performance of the banking sector, solid expectations for capital generation, and greater investor appetite following the normalization of the situation after the failed takeover bid for Sabadell.

Notable declines: Ence (-5.12%) continues to be under pressure after several months of declines, affected by uncertainty stemming from labor disputes and a less favorable operating environment. Pescanova also fell (-3.45%), although there were no clear catalysts during the week. Finally, Colonial (-2.41%) presented results that failed to convince the market, with weaker income and valuations in an environment that remains challenging for the real estate sector.

Relevant news

The longest shutdown in US history (43 days) has ended, allowing federal payments to resume and key data (CPI, employment, GDP) essential to the Fed’s roadmap to be published again.

The ECB warns against political interference in bank mergers, insisting that they must be guided by technical criteria and that integration, especially cross-border integration, is crucial to creating more competitive banks and completing the Banking Union.

ACS and BlackRock launch a global data center platform valued at €23 billion, a strategic operation that monetizes ACS’s digital business, reduces debt, and strengthens its position in a sector driven by the rise of the cloud and AI.

Telefónica is preparing several redundancy plans as part of its new strategic plan, which envisages between 6,000 and 7,000 departures and a 50% reduction in dividends (to €0.15) in 2026 to accelerate cost savings, strengthen its balance sheet, and advance its digital transformation.

Weekly outlook (Upcoming events)

Federal Reserve minutes, which will provide more clarity on monetary policy and the timing of possible rate cuts.

Preliminary PMIs for Germany, the UK, and the Eurozone, along with industrial production and business confidence data for Europe, which are key indicators for measuring growth and inflation.

Earnings releases: Neinor Homes, Solaria, Técnicas Reunidas, eDreams Odigeo.

We will continue to monitor these events to see how they affect the markets and our portfolio.

Quote of the week

”Discipline is the bridge between goals and accomplishment.”

Jim Rohn

Team Portfolio Management | Deusto Investment Club