Repsol shares recover at the close of trading on Tuesday: what were the reasons for their fall?

The actions of Repsol on the Spanish stock market IBEX 35 closed the day on Tuesday trading at 10.72 euros each. This figure represents an increase of 2.8% compared to its closing on Monday, when it stood at 10.42 points.

This is also its first positive closure since last January 19. On that date, the company’s share reached over 11.13 and until Tuesday it accumulated a fall of 8.4%.

The main reason for this decrease is the evolution of the European market, which has seen in recent weeks a reduction in the value of its Actions.

“The index of Actions in Europe it has dropped since January 15 by 6%. The US stock market is also in a downturn. Although the oil companies have fared better, the drop in Repsol responds more to a market issue”, stated Alberto Arispe, general manager of Kallpa SAB.

The price of Actions in the oil market depends on the evolution of the value of crude oil. This Tuesday the price of hydrocarbons grew in the global market, for which the revaluation of the share of Repsol.

“The price of crude has risen 2.4% on Tuesday. So it has not only been an increase of only Repsol, but of the sector in general”, explained César Romero, head of research at Renta4 SAB.

The window factor

On the 17th of this month there was a oil spill in the multibuoy terminal #2 of the Refinery The Pampilla, managed by Repsol, in the district of Ventanilla. For Romero, this event was a differentiating factor that caused the value of the company’s shares to fall more than that of its competition.

“Repsol it fell a little stronger than its comparisons in the United States and in the European case, it fell 2%-3% more. It’s not much, but you could see an impact on the action, but it’s pretty small. But that there was an impact due to the oil spill, there was”, he remarked.

The reduced impact, according to Arispe, is due to The Pampilla only represents 2.2% of the total worldwide operation of Repsol, so the consequences that could affect would not affect the value of the company.

“Repsol It has a market value of US$18 billion. The Pampilla when it went public it was valued at US$400 million, representing 2.2% of the company’s total market value. If the stock fell for this reason, going forward I don’t think it will decline further”, assured Arispe.