Stock exchange in Frankfurt - Investors put on the brakes after Dax records
After the Dax's recent record-breaking run, investors on the German stock market appear to be cashing in a little at the start of the week. In early trading, the leading index lost 0.36% to 16,691.81 points. The MDax of medium-sized companies fell by 0.77% to 26,923.66 points. The Eurozone's leading index, the EuroStoxx 50, fell by around 0.4 percent.
After the year-end rally had driven the Dax up by a good 16 percent from its October low until last Thursday, the wind changed. This was because the European Central Bank (ECB) dampened hopes of interest rate cuts in the near future despite the significant fall in inflation. At times, the DAX plummeted to 16,670 points as a result.
Among the individual stocks, the shares of Carl Zeiss Meditec stood out at the top of the MDax with a price increase of 2.1 percent. The medical technology company wants to expand its portfolio in the field of ophthalmology and take over the Dutch Ophthalmic Research Center (DORC) for 985 million euros.
Shares in Thyssenkrupp Nucera reacted to the electrolysis specialist's good annual figures with a rise of 3.3 percent. The plant manufacturer grew strongly in the past financial year and significantly increased its operating result (EBIT). For the new financial year 2023/24, the company announced further sales growth in the mid double-digit percentage range. However, the ramp-up of the hydrogen business is expected to lead to an operating loss in the mid double-digit million euro range.
Electronics retailer Ceconomy expects further operating improvements in the new financial year. Sales are expected to increase slightly in 2023/24 adjusted for currency and portfolio effects and adjusted operating earnings are expected to rise significantly. However, investors reacted with disappointment: the share price fell by 6.3 percent as the SDax laggard.
In contrast, Energiekontor's shares soared by 8.7 percent as the SDax leader. The wind and solar farm operator raised its profit outlook following the completed sale of a wind farm project in Scotland. Pre-tax profit is expected to increase by 30 to 60 percent. Previously, a profit increase of 10 to 20 percent was planned.
A number of index changes also came into effect on Monday. The shares of real estate specialist Aroundtown, wafer manufacturer Siltronic and bottling plant manufacturer Krones were promoted from the SDax to the MDax for mid-caps. In return, the shares of the media group ProSiebenSat.1, the mechanical engineering company Dürr and the industrial recycler Befesa will be relegated to the SDax.
In addition, the shares of the newcomer Schott Pharma, the investment company Mutares and the pump manufacturer KSB are now represented in the SDax of smaller stocks. The shares of Xing parent company New Work, IT security service provider Secunet and gaming provider Zeal Network have to leave the index. In the leading Dax index, everything remains the same.
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- Investors on the Frankfurt stock exchange, specifically in the Dax, are showing signs of cautiousness after the index broke its record, leading to a slight decrease in its value.
- The MDAX, a category of medium-sized companies on the German stock market, also experienced a decrease of 0.77%, following the trend set by the Dax.
- The EuroStoxx 50, the leading index for the Eurozone, also saw a decrease in value, as investors seem to be taking a step back from the market.
- The recent drop in the Dax might be attributed to the European Central Bank (ECB) dampening expectations of near-future interest rate cuts, despite the decrease in inflation.
- Despite the overall market trend, shares of Carl Zeiss Meditec, a German medical technology company, saw an increase of 2.1%, as they aim to expand their ophthalmology portfolio.
- Thyssenkrupp Nucera's shares rose by 3.3% due to their strong annual financial performance, with a significant increase in operating result and plans for further growth.
- The shared of Aroundtown, Siltronic, and Krones were promoted from the SDax to the MDax, while ProSiebenSat.1, Dürr, and Befesa were relegated to the SDax.
- In the SDax of smaller stocks, Schott Pharma, Mutares, and KSB were added, and Xing parent company New Work, Secunet, and Zeal Network were removed, none of these changes affected the leading Dax index.
Source: www.stern.de
