2008 Report on share ownership in Spain

2008 Report on share ownership in Spain

Retail investors hold to their equity investments, accounting for 20.2% of total share ownership.

The financial sector reduces its weight and foreign investors increase theirs.

The participation of retail investors (households) as owners of shares listed on the Spanish stock exchange in 2008 slightly increased by 1% in 2008 for the previous year to 20.2%, according to the 2008 Report on share ownership in Spain, published by BME’s Research Department.

The report also reflects an across-the-board reduction in the weight of the financial sector (banks, saving banks, investment and pensions funds and insurance companies) and a significant increase in the weight of foreign investors to its maximum level since records started. Another trend observed is a modest rise in the presence of non-financial firms.

In 2008, retail investors (the households sector) increased their participation by 1% compared to the previous year to 20.2%. Following the sharp correction suffered in 2007, retail investors, on aggregate, maintained their equity investments against the backdrop of changing market conditions that took place in 2008. According to the latest report on share ownership in Europe, published by the FESE and which was made using data for 2007, the participation of retail investors in equities in Spain continues to be significantly higher than the European average and based on the figures published today, the same situation will remain when the report is made with figures for 2008.

The aggregate value of the participation in Spanish listed stocks from the financial sector (which comprises banks, saving banks, investment and pension funds and insurance companies) stands at 15% of the market capitalisation at end-2008, 2.6 basis points below that at end-2007 and 8 basis points below the record high posted in 1997. According to the report, “the loss of relative participation throughout 2008 shows the significant net divestments carried out by Spanish financial institutions to deal with the deep liquidity crunch”.