Spanish shares dropped on Thursday, with the benchmark Ibex-35 down 0.74 percent or 75.9 points, to close at 10,197.50 points.

Hotel chain Melia Hotels was down 2.87 percent, followed by real estate company Inmobiliaria Colonial and Spain's fourth largest bank Banc Sabadell that lost 2.36 percent and 1.68 percent respectively.

Telecommunication company Cellnex advanced 1.73 percent, being the top gainer of the blue chips.

Infrastructure company ACS and steel manufacturing corporation ArcelorMittal rose 1.19 percent and 0.96 percent respectively.