Portfolio performance

Over the past week, the DIC portfolio has recorded a return of -1.36%, compared to -0.82% for the IBEX 35 and -1.69% for the EuroStoxx 50.

Highlights of the week

Notable gains: Repsol (+4.16%) and Logista (+1.80%), driven by positive earnings releases. In the case of the oil company, this was due to the improvement in crude oil prices, stable dividends, and debt reduction, while the distributor advanced despite an ~8% drop in profits, announcing a new dividend distribution.

Notable declines: Telefónica (-16.63%) after reducing net profit from continuing operations by ~46% in 9M25 compared to the same period in 2024. Gestamp (-14.58%) fell due to an 18% drop in net profit, impacted by a fall in EBIT and the impact of the exchange rate. Also noteworthy is IAG (-12.39%) which, despite increasing its net profit and announcing additional dividends charged to financial results, is suffering from tough comparisons and overly optimistic estimates. Finally, Grifols preferred shares (-10.10%) fell after results that, although showing a slight improvement in revenue, EBITDA, and net profit, continue to raise concerns about its high leverage and exposure to exchange rates.

Relevant news

Progress towards ending the longest shutdown in US history, after the Senate approved a temporary agreement until January 30th that will allow back pay to be paid and key federal agencies to reopen. However, it still needs to be ratified by the House of Representatives, with differences remaining over Obamacare subsidies.

The BoE keeps rates at 4% after year-on-year inflation data remains stable at 3.8%.

Banks call for regulatory adjustments to finance the defense sector, seeking a key role in the European strategy to strengthen military autonomy.

Breweries achieve record profits despite stagnant consumption, driven by their expansion into new categories such as coffee and summer wine.

Weekly outlook (Upcoming events)

Monitoring of developments in the US government shutdown, and possible publication of unemployment data if the situation is resolved.

Earnings releases: Sabadell, ACS, Acciona, Colonial, Merlin, and CAF.

Friday: Spanish CPI data.

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

Quote of the week

”In investing, what is comfortable is rarely profitable.”

Robert Arnott

Team Portfolio Management | Deusto Investment Club