Stock exchange in Frankfurt - Dax continues on record course - Merck share price slips
The Dax continued its record-breaking run on Wednesday. In the first hour of trading, the leading German index gained 0.16% to 16,560.04 points. In the year-end rally since the October low, it has so far gained more than 13 percent.
The mid-week picture on the DAX was somewhat clouded by a 13% drop in the price of Merck KGaA shares. The pharmaceutical company suffered another setback with its drug Evobrutinib for the treatment of multiple sclerosis. Two studies on the safety and efficacy of the drug had not produced the desired results, it said. As a result, the bank HSBC downgraded Merck shares to "Hold" and removed the sales estimates for Evobrutinib from its valuation model.
The MDax index of mid-sized companies posted a gain of 0.43 percent to 26,605.14 points on Wednesday. It is clearly lagging behind the Dax this year. Its record high from 2021 is a long way off. The eurozone index EuroStoxx 50 gained 0.2 percent in the middle of the week at its highest level since the beginning of August.
In the pharmaceutical and healthcare sector, investors were disappointed by Merck KGaA and Fresenius on Wednesday. The medical group is not allowed to pay a dividend for the current year due to government energy subsidies. "Fresenius was a safe dividend stock," said one trader. The share price fell by 1.3 percent.
Better news came from Evotec: a partner of the biotech company received approval in China for a drug to treat sleep disorders. According to a press release, the Hamburg-based drug researcher is now entitled to double-digit royalties on net sales generated by Zhejiang Jingxin Pharmaceutical with Dimdazenil (EVT201). However, Evotec's share price gains have recently dwindled significantly.
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- Despite Merck KGaA's share price slide, Frankfurt's stock exchange, particularly the Dax, continued its record course on Wednesday.
- Merck KGaA, a renowned pharmaceutical company based in Frankfurt on the Main, saw a 13% drop in its share price due to unfavorable results from two studies on Evobrutinib, a drug for multiple sclerosis treatment.
- The price slide of Merck KGaA shares was a significant setback for investors in the pharmaceutical sector, which was also impacted by Fresenius's situation.
- The downturn in Merck KGaA's shares was a notable event in the trading hour of Frankfurt's Exchange, where other indices such as the MDAX and DAX were also in play.
- Despite the record course of the DAX, the MDAX index, which includes mid-sized companies like Merck KGaA, has not managed to reach its 2021 record high, signifying a gap between the two indexes.
- Fresenius SE, another German pharma company, also saw a decline in its share price due to government energy subsidies that impacted its dividend payment ability.
- Merck KGaA's price slide and the lackluster performance of Fresenius SE were notable events in the pharmaceutical sector that investors will be watching closely as the record hunt for the DAX continues.
Source: www.stern.de
