Ibex 35 finds favour with foreign investors

Spain's main benchmark index is seeing increased interest from investors abroad following its devaluation throughout the financial crisis, say bankers. The Ibex 35 peaked at 16,000 points in 2007 but is now almost half that, leaving some investors confident it has turned the corner

Foreign investors are returning to the Ibex 35 index, Spain's main benchmark underlying, with deals completed in the past two months notable for their size and the fact they involve investors from a variety of countries, say market participants.

"It was unthinkable a few months ago, but the favourable environment across Europe has made investors wake up to the rewards of investing against the Ibex 35," says a London-based banker at a large European bank.

"We have closed a few large trades on the