Stock exchange in Frankfurt
The hunt for records continues – not just for the Dax
The Dax is the most important stock index in Germany. photo
© picture alliance / dpa
The DAX’s record hunt continues on Friday. The leading German index reached its seventh record in a row in early trading – most recently it claimed an increase of 0.47 percent to 17,761.05 points. Based on the closing price, it could even be the eighth record day in a row for the Dax, which is currently heading for a weekly increase of 2.2 percent. Stock market expert Thomas Altmann from QC Partners spoke of the longest record series since 2015.
The MDax of medium-sized companies gained 0.30 percent to 25,901.59 points on Friday morning. The Eurozone leading index EuroStoxx 50 rose by 0.3 percent on Friday morning.
Meanwhile, investors can not only look forward to a rise in the Dax. The experts at HSBC bank pointed out that after the DAX price index at the beginning of the week, the CDax also reached a record high on Thursday. In addition, the Japanese Nikkei 225 set a new record.
Market observers consider the DAX price index to be more comparable to other indices because – like most stock market indices – it only reflects price developments. In contrast, with the DAX performance index, which is usually the focus, the index members’ dividends are mathematically reinvested. The CDax contains all German stocks listed on the Frankfurt Stock Exchange in the General Standard and Prime Standard.
The fact that both indices have reached record levels for the first time in a long time is “grist for the bulls’ mill,” write the HSBC experts. Regarding the ongoing Dax record hunt, Landesbank Helaba’s daily outlook says: “Obviously there is so much confidence in the upward trend that people want to participate in it.”
However, both Helaba and expert Altmann warned against excessive expectations regarding further price developments. They referred to technical chart signals that the Dax was now overbought. Accordingly, there is a risk of correction.
Investors on both sides of the Atlantic are currently reacting with relief to the latest inflation signals, which indicate that inflation is weakening and thus do not bury hopes of interest rate cuts. Data on February inflation in the euro area will be available shortly. “Obviously June is emerging as the date on which the ECB will begin its interest rate cutting cycle,” said Commerzbank expert Antje Praefcke.
In addition to the data, some business figures were on the agenda. The commercial vehicle manufacturer Daimler Truck is surprisingly confident for 2024 after a jump in profits in the last quarter despite weaker orders. Investors reacted enthusiastically. With a price jump of more than 13 percent, the shares reached the top of the DAX and continued their record run. In their wake, the shares of the Volkswagen commercial vehicle holding Traton rose by 4.4 percent as the biggest winner in the SDax small-cap index.
Sixt shares performed better than the MDax, gaining 0.7 percent. The car rental company reported record sales for 2023. However, pre-tax profit also fell due to high depreciation on electric cars and lower demand for electric vehicles and thus missed a new record. In addition, shareholders should now receive less dividends. Stock marketers also referred to a “very weak” outlook for the current quarter. Against this background, the goals for 2024 sound optimistic. Analyst Christian Obst from Baader Bank sees these, as well as the figures for 2023, within expectations.