It is no mystery why stocks are at 2009 lows. Doubts around the Greek recovery plan, a looming recessing and liquidity needs in European banks are having an adverse effect on the markets. Few companies were exempt from recent hits, and while some investors are losing profits, the bears are gaining from taking short positions.
According to the most recent publication from the Comisión Nacional del Mercado de Valores (CNMV), short selling activity has increased for 15 companies 12 of which are in the Ibex 35. Only four companies have been spared in the past two weeks.
Last Friday's trading session pushed the following Spanish companies to their annual lows: Gamesa, FCC, Amadeus, Acerinox, Mediaset, Abengoa and Meliá Hotels. At first glance the companies look disparate, but they have one factor in common. What?
The ban on short selling in the financial sector has turned investors heads toward these companies. Gamesa has been hit the hardest. Short-term investors now own 4.24% of its capital. Up from 3.17% previously, this is the greatest percentage in the bears' hands since December of 2010. But the company's stock price is affecting more than the bears given that it has dropped 45.15% since the beginning of 2011.FCC has set another record. The bears have increased their stakes in the company by 0.63% and now own 5.67% of their capital. This is the highest amount since the CNMV has published this kind of data. Enagás is another surprise, albeit negative. The energy company had managed to avoid bearish investors for some time, but now they are being pursued.
