Stock exchange in Frankfurt
Dax is running out of momentum just below record
The Dax is the most important stock index in Germany. photo
© picture alliance / dpa
Just below the DAX record high, investors hit the brakes again on Wednesday. After the leading German index came within 25 points of its record of 18,567 points, it ran out of momentum. At the end of trading it claimed an increase of 0.37 percent to 18,498.38 points. The significant price gains of some reporting companies, especially Siemens Energy, proved to be a support. The MDax of medium-sized stock exchange companies ultimately gained 0.50 percent to 26,695.33 points in the middle of the week.
The Eurozone leading index EuroStoxx 50 was up 0.4 percent. Prices also continued to rise in Paris and London. The New York leading index Dow Jones Industrial and the technology-heavy Nasdaq 100 index showed little change at the end of European trading.
Shares in Siemens Energy jumped by almost 13 percent at the top of the DAX after the energy technology group increased its annual forecast after a strong second quarter and thus sent better news again after numerous profit warnings. Experts particularly praised the fact that the company now expects an inflow of cash for the full year. The restructuring plan is also in place for the problem child, the wind power subsidiary Gamesa.
There were also positive reactions to the results of Munich Re and Henkel, as shown by share price increases of 3.2 and 2.9 percent respectively. At Henkel, investors honored the confirmation of the previously published quarterly figures. According to DZ Bank expert Thorsten Wenzel, Munich Re’s combined ratio in property and casualty reinsurance is excellent.
In contrast, BMW’s figures met with a negative response in the market at minus 2.9 percent. Above all, the surprisingly weak profitability weighed on the mood – not only at the Munich car manufacturer, but throughout the entire industry. According to figures, the automotive supplier Continental also contributed to the worse mood with a share price decline of 3.2 percent.
In the MDax, the shares of Puma, Jenoptik and Knorr-Bremse were the most in demand, with price gains of up to almost 11 percent. The sporting goods manufacturer expects increasing momentum after a weaker first quarter and spoke of a good start to the current quarter.
But there were also some big MDax losers with SMA Solar, Carl Zeiss Meditec and Bechtle. At the inverter manufacturer SMA, whose shares lost 6.7 percent at the end of the index, sluggish demand as a result of full customer warehouses slowed growth.
In the SDax small-cap index, Auto1’s stocks set off fireworks with a price increase of a good 28 percent after the used car dealer increased its profit forecast. Borussia Dortmund shares rose by 6.3 percent. The football club had again increased its earnings forecast after reaching the final of the Champions League.
In contrast, SDax bottom performer SAF-Holland lost 6.9 percent of its value. A stockbroker justified this with profit-taking, triggered by disappointed expectations for the commercial vehicle supplier’s North American business. Investors at the web host Ionos cashed in after a record hunt – the shares fell by 6.5 percent.
The euro showed little movement, most recently at 1.0756 US dollars. The European Central Bank (ECB) had previously set the reference rate at $1.0743.
On the bond market, the current yield on German securities remained at 2.49 percent. The Rex bond index fell by 0.03 percent to 124.66 points. The Bund future lost 0.23 percent to 131.37 points.