Spanish Property, Bank Stocks Plunge on Concern Bubble Bursting

[Guest guest]

Dear list members,

 

The uncertainty in financial markets is pervasive. It would be

interesting to examine a mundane chart for Spain. However, it is a

very old country and perhaps more challenging to find the true time

for it than more recently formed countries.

 

Best wishes,

 

Thor

 

Spanish Property, Bank Stocks Plunge on Concern Bubble Bursting

By Alexis Xydias and Sharon Smyth

 

April 24 (Bloomberg) -- Spanish real-estate and bank stocks tumbled

on concern the nation's property boom is imploding. Grupo Inmocaral

SA and Montebalito SA led the slump by developers of homes and

offices. Banco Bilbao Vizcaya Argentaria SA, the country's second-

biggest bank, and Banco Sabadell SA dropped on speculation bad loans

will rise. ``This is the burst of the Spanish real-estate bubble,''

said Alberto Espelosin, a strategist at Zaragoza, Spain-based

Ibercaja Gestion, which manages about $7 billion. ``Banks are exposed

and have risk.'' Spanish property stocks have surged amid a rally in

home prices, fueled by foreign buyers of vacation houses and an

influx of immigrants. Home prices in the country climbed at an

average annual rate of 15 percent between 1999 and 2005. In the 12

months through March, the increase was 7.2 percent, the smallest

since 1998, according to a government report last week.