Ibex 35 hits 2012 high, potential for 11.5% more in gains

After much-anticipated agreements Greece has avoided bankruptcy again. Greek politicians reached an agreement for carrying out the majority of cutbacks demanded by the EU that were needed before going through with a second bailout.

However, European stock markets did not rise as much as expected. While markets did rise somewhat, the Ibex 35 up for the day by as much as 1.33% before settling for a gain of 0.6% and 8,902.10 points. At its annual high, experts believe that the Spanish stock market has room to expand. They predict that the index will rise to at least 9,914 points.

Investment banks still have a bullish view of Spanish stocks. Despite revaluations that were carried out during the first few weeks of 2012, many companies are still valued far below the prices that analysts say they should be at right now. If Ibex 35 companies reach these estimated values during the next few months, the Ibex 35 could grow another 11.5% and approach the 10,000 point barrier which has been a major point of resistance for over six months.

The main challenges

Still, the index must pass the critical 9,000 point psychological level, which it dropped below at the end of October. During yesterday's trading session it was not far from breaking this barrier, but never passed 8,967 points.