Ibex 35 Achieves Best First Half Since 1998, Rising 20.67% with 30 Stocks Gaining
July 1, 2025 – Madrid — The Ibex 35 index has delivered an exceptional performance in the first half of 2025, marking its strongest opening semester since 1998. The Spanish benchmark climbed 20.67% over the six-month period, outpacing major global indices and highlighting a broad-based rally with 30 of its 35 components finishing higher.
A Historic Semiannual Gain
According to Bloomberg data, the last time the Ibex posted a comparable surge was in the first half of 1998, when it rose nearly 40%. This year, it not only outperformed the German Dax, which increased 20.09%, but also the Hang Seng in Hong Kong, up 20%. The robust gains come despite a slight June decline of 1.13%, attributed mainly to weak sales reported by Inditex and a pause in the banking sector’s steady climb.
Key Drivers: Defense Sector and Financials
The stellar performance owes much to the strong showing from defense stocks across Europe. Indra, a leading defense and technology company, spearheaded the rally with an extraordinary 115.8% gain since January—its best half-year return in over two decades. This remarkable rise reflects Indra’s fifth consecutive year of growth and levels not seen before.
On the financial front, Spanish banks experienced a surge fueled by solid earnings and attractive shareholder returns. Together, six major Spanish banks posted a net profit record of €31.768 billion in 2024, up 21% year-over-year, with the first quarter alone seeing a 27% increase to €8.489 billion. This strong financial backdrop underpinned share price gains ranging from BBVA’s 38% to Unicaja’s 57.46%, despite a recent slowdown from all-time highs. Investors remain cautiously optimistic about BBVA’s ongoing takeover bid for Banco Sabadell, which recently received government approval but includes regulatory conditions delaying a merger for at least three years.
Utilities and Insurance Also Shine
Defensive sectors also attracted investor interest amid global trade tensions. Utility giant Endesa rose 29.47%, benefiting from its immunity to tariff impacts, reliable dividends, and solid balance sheet. Similarly, insurers like Mapfre closed the semester at record highs, appreciating 41.94% since January, buoyed by a successful strategic plan boosting first-quarter profits by nearly 28%.
Few Laggards Amid Broad Strength
Only five Ibex components declined this semester. Rovi was the weakest performer, down approximately 13%, weighed down by fragile revenue forecasts. Inditex also struggled, falling 11% year-to-date with ongoing sluggish sales growth. Other laggards included Fluidra, Puig, and Logista.
Among notable performers, renewable energy firm Solaria enjoyed a remarkable 29.35% jump in June alone, its best monthly return since 2020. The stock rebounded strongly after a challenging start to the year, helped by expansion into data centers, long-term contracts, and advancements in storage solutions.
Global Context: Dollar Weakness and Mixed Equity Markets
Globally, the dollar index fell about 10% this year — its worst first half since 1973 — while gold climbed 25% to nearly $3,300 per ounce, and Bitcoin advanced 15% to over $107,600 by the end of June.
In the U.S., the Nasdaq Composite rebounded 17.75% in the quarter, led by technology giants such as Nvidia, which is nearing a $4 trillion market cap, Broadcom, and Palantir. The S&P 500 and Dow Jones also posted gains of 10.57% and 4.7% respectively. Across the Atlantic, Germany’s Dax was Europe’s best performer in Q2, rising 7.8%, buoyed by defense and infrastructure names like Siemens Energy, Rheinmetall, and Heidelberg.
Outlook
The Ibex’s stellar first half reflects a combination of sector rotation into defense, financial strength, and investor appetite for dividend-paying defensive stocks amid global uncertainty. While June’s minor pullback serves as a reminder of market volatility, the broad participation across sectors and healthy corporate results underpin positive momentum as Spain’s equity market leads global peers into the summer.
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