The Ibex closes a record year and rises 49%

The Ibex 35 closed 2025 as its best year since 1993, achieving a cumulative gain of 49.27% and remaining above 17,000 points at year-end, a historic high not previously reached by the benchmark Spanish stock index. In Wednesday's session, the last of the year, the index closed at 17,307.8 points, with a slight correction of 0.27% compared to the previous day. Despite this final negative close, the Ibex consolidated its all-time highs and finished as the "most profitable" index of 2025 in Europe. This historic milestone was achieved despite the economic and international context, marked by market volatility due to the armed conflicts in Ukraine and the Middle East, tensions caused by Donald Trump's trade war, and doubts about the future of artificial intelligence (AI). The worsening trade war kept markets on edge during the first half of 2025, until the first agreements were reached with its main economic partners, including the European Union. In the second half of the year, attention shifted to AI and concerns about a potential bubble and the profitability of investments in this technology. Despite the uncertainty, Wall Street also reached all-time highs, with key AI stocks soaring, such as Nvidia and Alphabet. Likewise, precious metals like gold, silver, and platinum—considered safe-haven assets—reached record highs. The weight of banking

The Ibex 35 has been driven primarily by Spanish banks, one of the sectors with the greatest weight within the index. Specifically, it is estimated that, on average, Spanish banks have achieved a return of nearly 100%, driven by the slowdown in interest rate cuts, attractive dividends, share buyback programs, and the inflow of foreign capital. In this scenario, Banco Santander, with a return of 125%, stands out as the star of the sector.

The investment and analysis company XTB highlights Indra, which has had a "spectacular" year within the Ibex 35. The company, now led by Ángel Escribano, has gone from trading at €17 per share at the end of 2024 to reaching an all-time high of €48.5, a 184% increase, thanks to increased defense spending by the Spanish government and NATO. Analysts also highlight the favorable performance of the [unclear - possibly "infrastructure" or "technological"] sector. utilitiesThe steel sector – especially Acerinox – and the tourism and construction companies, where ACS stands out, have maintained an upward trend in their order books. This sector has closed the year with stock market gains of over 70%. In the energy sector, Iberdrola, with a projected 38.8% increase in 2025, has finished the year at its highest point ever. Specifically, its shares closed above €18 and, with a market capitalization exceeding €120 billion, it has positioned itself as the leading European company in the sector and among the two largest in the world. One of the major players on the Spanish stock exchange, Inditex, has been negatively impacted by falling demand, the effect of exchange rates, and increased operating costs, despite lower raw material and transportation prices. The worst scenario, however, is that of Telefónica, which has experienced a year of leadership changes and strategic redefinition that have led to an 11% drop in its share price. Puig has also failed to convince investors; after several episodes of volatility, it closed 2025 with a 16% decline, while Redeia, affected by the nationwide blackout of April 28, saw its share price fall by 8%. Nevertheless, the overall picture for the Spanish stock market is undeniably positive, as only half a dozen Ibex 35 stocks closed the year with losses: Fluidra (-1.53%), Amadeus (-7.86%), Redeia (-8.06%), and Cellnex (-10%).

Oil and Currencies

Major European stock markets also closed with significant gains, although far behind the Spanish index: Paris rose 10.42%, London 15.14%, Frankfurt 23%, and Milan 31.47%. Meanwhile, Wall Street indices show year-to-date gains of 13.7% for the Dow Jones, 17.25% for the S&P 500, and 21.27% for the tech-heavy Nasdaq. In the commodities market, Brent crude, the European benchmark, ended the year down 17% at $61.90 a barrel, while its US counterpart, West Texas Intermediate (WTI), fell 18.4% to $58.50. As for currencies, the euro appreciated a remarkable 13.4% against the dollar, trading at $1.1743.