Brexit has stronger effect on Spanish stock market than general election results

The Brexit dragged the Ibex-35 stock market to a three-year low on Monday despite the Spanish general election on Sunday that resulted in a second hung parliament in under a year.

After a record fall of almost 13 percent on Friday following the Brexit referendum on Thursday, the Ibex opened strongly on Monday with the news of Mariano Rajoy's People's Party win, all be it without enough seats for a majority government, registering a rise of up to three points.

However, the continued uncertainty of the effects of the Britain's exit from the European Union ended up dragging share prices down by 1.61 percent on the day.

Shares opened trading on 7,787.70 points and closed on 7,646.50 points, their lowest level in three years.

Only seven companies saw their shares increase on Monday, with Bankia, which suffered major losses as did all of Spain's banks on Friday, seeing share prices bounce back with gains of 6.87 percent, while Merlin Pro shares increased 5.83 in value and Endesa shares by 5.04 percent.

IAG suffered the biggest hit of the day with a 17.94 percent plummet in values over fears of the effects the Brexit will have on European travel, while Ferrovial lost 6.87 percent and Arcelor 4.77 percent.

The risk premium did stabilize after Friday's Brexit-provoked increase and ended the day on 156.60 points, while interest on the 10-year bond stood at 1.42 percent. Endit