Stock exchange in Frankfurt - Investors cash in after stock market rally
After the recent rally on the German stock market, investors cashed in at the start of the week. The leading Dax index closed 0.60 percent lower at 16,651 points on Monday. The MDax of medium-sized companies fell by 0.85% to 26,904 points.
From the end of October alone to its record high of just over 17,000 points reached in the previous week, the Dax had recorded an increase of more than 16%, driven by the prospect of interest rate cuts in the near future. However, after the European Central Bank (ECB) dampened this expectation somewhat, particularly for the eurozone, the local stock market ran out of steam for the time being.
Among the individual stocks, Deutsche Börse shares led the Dax with a 1.7 percent gain following a buy recommendation from UBS. Analyst Michael Werner justified his optimism with an expected sector rotation from bank stocks into shares of stock exchange operators in 2024.
Siemens Energy was at the bottom of the Dax, down 3.3 percent. The energy technology company's shares are also the weakest on the DAX over the year. Investors often do not want to have poorly performing shares in their portfolios at the end of the year.
Carl Zeiss Meditec shares gained 2.8 percent at the top of the MDax. The medical technology company wants to expand its portfolio in the field of ophthalmology and take over the Dutch Ophthalmic Research Center (Dorc).
The weakest stock in the MDax was Delivery Hero, which lost seven percent. In terms of share price performance over the year as a whole, the food delivery service's shares also came last in the index.
Energiekontor was the strongest stock in the small-cap index SDax, gaining 7.4 percent. The wind and solar farm operator had raised its profit outlook following the completed sale of a wind farm project in Scotland.
The electronics retailer Ceconomy expects further operating improvements in the new financial year. The shares nevertheless lost 9.2 percent, bringing up the rear in the SDax. The consumer environment remains very difficult and the outlook for the new financial year is correspondingly vague, according to one market participant.
The leading European index EuroStoxx lost 0.62 percent to 4521 points on Monday. The leading stock exchange in Paris also fell, while London rose slightly. In New York, the leading index Dow Jones Industrial continued its record run at a moderate pace. The Nasdaq stock exchange recently saw moderate gains.
The euro traded at 1.0920 US dollars after the close of European trading. The European Central Bank (ECB) had set the reference rate at 1.0918 (Friday: 1.0946) US dollars in the afternoon, meaning that the dollar cost 0.9159 (0.9135) euros.
On the bond market, the current yield fell from 2.07 percent on Friday to 2.06 percent. The bond index Rex rose by 0.17 percent to 128.07 points. The Bund future recently fell by 0.37 percent to 136.69 points.
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- Investors also saw opportunities in the MDAX, as it is part of the German Stock Exchange located in Frankfurt on the Main.
- UBS, a renowned financial institution, has recently issued a buy recommendation for Deutsche Börse shares, which are listed on the Frankfurt Exchange.
- The European Central Bank (ECB) in Frankfurt played a role in influencing the stock market trends, as its expectations for interest rate cuts affected the market's momentum.
- The SDAX, another leading index of the Frankfurt Stock Exchange, saw Energiekontor as its strongest performer, with a 7.4% gain following a successful wind farm sale.
- Many investors aim to avoid poorly performing stocks like Delivery Hero towards the end of the year, which is why it remained at the bottom of the MDAX index.
- Despite forecasting further improvements, Ceconomy shares struggled in the SDAX, showing the volatility that can persist even in Germany's smaller-cap index.
Source: www.stern.de
