Stock exchange in Frankfurt - Dax ends 2023 with 20 percent annual gain
The DAX ended the last trading day of a strong stock market year with a moderate gain. The positive sentiment on the German stock market was supported by the US stock markets, which are expected to post gains and had also continued their record run on Thursday before closing little changed.
In the shortened trading session, the leading German index gained 0.30 percent to 16,752 points. It thus remained close to its record high, which was reached in mid-December at just over 17,000 points. Although there was only a small gain of 0.3 percent over the holiday-shortened week and a rise of just over three percent in December, the gain for the last quarter amounted to almost nine percent. For the year as a whole, there was a substantial increase of 20.3%.
The MDax index of medium-sized companies rose by 0.27% to 27,137 points on Friday, representing a total annual increase of 8.0%.
The main topic in 2023 was the development of inflation and thus the key interest rate on both sides of the Atlantic. Concerns about further rises and also about "high interest rates for a long time" alternated with hopes that interest rates would soon peak. This led to many a slump in the summer, but also to record runs for the German stock market barometer. In recent weeks, these hopes have finally led to growing expectations that interest rates will fall in the near future. The result was a brilliant rally on the US stock markets and also in Germany, driving the indices to record highs.
According to Thomas Altmann, portfolio manager at asset manager QC Partners, a reality check is now due in the new year. "Then we will have to see how much risk stock market players are prepared to take at the start of the year. And whether they are really prepared to invest larger sums at the current price levels."
Winners and losers
On Friday, attention turned to the "tops and flops" of the year in the DAX. The favorite in 2023 was the Rheinmetall share, which despite a doubling of the share price in 2022 was able to gain a further 54 percent. Thanks to its strong performance, the armaments company was promoted to the leading index in March. As a consequence of Russia's war of aggression against Ukraine, Western countries are currently investing more money in armaments.
Zalando shares, on the other hand, saw the steepest decline in the DAX, falling by around 35%, continuing the downward trend of the previous year. In 2022, the online fashion retailer's share price had already fallen by more than half. Customers' reluctance to spend in the face of high inflation and economic uncertainty weighed on the fashion industry, as did high stock levels and sales with deep discounts.
The stock exchanges across Europe are not all closed yet. The EuroStoxx 50 rose by 0.38 percent to 4532 points in the early afternoon. A similar increase was recorded in Paris. In London, where the stock exchange is already closed, a small gain of 0.14 percent was recorded. On New York's Wall Street, a friendly last day of trading was on the cards.
The euro last traded at 1.1055 US dollars. The European Central Bank had set the reference rate significantly higher at 1.1114 dollars on Thursday.
On the bond market, the current yield rose from 1.95 percent the previous day to 2.03 percent. The Rex bond index fell by 1.26 percent to 127.43 points. The Bund future fell by 0.56 percent to 137.40 points.
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- The strong performance of the DAX in the stock market year 2023 was also reflected in the MDAX, with medium-sized companies seeing an annual increase of 8.0%.
- Despite closing slightly lower on the last trading day before the year-end, the DAX still managed to record a remarkable 20.3% gain for the entire stock market year, with Frankfurt on the Main being one of the key locations for trading.
- The development of inflation in both Europe and the United States, or 'Atlantic', played a significant role in shaping the stock market landscape in 2023, causing fluctuations and creating opportunities for record runs.
- Among the 'winners' in the DAX during the year, Rheinmetall stands out, with the armaments company seeing a 54% increase in its share price, boosted by increased investments in defense following Russia's invasion of Ukraine.
- Conversely, Zalando experienced one of the steepest declines in the DAX, falling by around 35% as customers' reluctance to spend due to high inflation and economic uncertainty hit the fashion industry hard, with high stock levels and deep discounts also affecting sales.
Source: www.stern.de
