The Dax initially paid tribute to its recent record hunt on Monday. After the eventful previous week, investors now have to catch their breath, wrote the experts at the Italian bank Unicredit.
The Dax initially paid tribute to its recent record hunt on Monday. After the eventful previous week, investors now have to catch their breath, wrote the experts at the Italian bank Unicredit.
In the first hour of trading, the leading German index fell by 0.50 percent to 16,275.43 points. The MDax for medium-sized companies fell by 0.67 percent to 27,295.48 points, while the leading eurozone index EuroStoxx 50 lost 0.29 percent to 4382.00 points.
On Friday, the Dax crowned a strong week with the first increase above the 16,400 point mark. The previous key interest rate decisions by the US Federal Reserve and the European Central Bank (ECB) were as expected by economists and had tended to support the Dax – although the Fed had surprised a number of investors negatively with references to the number of possible further interest rate increases in the further course of the year.
At the start of the week, market participants spoke of rather quiet trading, also because there was no trading in New York due to a holiday. As a result, the US stock exchanges failed to set the pace during the day – they had already suffered from moderate profit-taking on Friday. There was no support for Dax & Co from Asia either: on Monday, price falls prevailed on the most important stock exchanges there.
After the reduction in sales and margin targets, shares in Dax taillight Sartorius fell by 13.7 percent to their lowest level in around a year. The pharmaceutical and laboratory equipment supplier is struggling with the ongoing reduction in customer inventories after the corona pandemic and general weak demand. For JPMorgan analyst Richard Vosser, the achievability of the goals for 2025 is now in question, although Sartorius is sticking to them.
With minus 2.5 percent to 44.57 euros, BASF was impressed that the bank HSBC has given up its buy recommendation for the shares of the chemical company and is only issuing a “hold” recommendation. They are thus listed slightly below the price target, which was reduced from 57 to 46 euros.
On the other hand, MTU and Airbus took top places in the Dax with price gains of 3.4 and 0.6 percent respectively. The engine manufacturer convinced investors with its increased profit target for the current year. The analysis house Jefferies said that an increase in the forecast was expected, but rather only with the figures for the first half of the year. Meanwhile, shortly before the start of the air show in Le Bourget near Paris, the aircraft manufacturer hoped for similarly good business as before the corona pandemic.
Beiersdorf’s shares rose by 1.7 percent to EUR 122.65 after the major French bank Societe Generale upgraded them twice from “sell” to “buy”. Analyst David Hayes increased the price target from 112 to 139 euros. He is very optimistic about the growth momentum of the Nivea brand. Ambitions with La Prairie and trends in derma-cosmetics also provided support. Hayes still considers the market expectations to be conservative.
The index changes made by Deutsche Börse also came into effect on the German stock market this Monday. Everything stays the same in the Dax. However, there are some shifts in the MDax and SDax. The drug researcher Evotec, the plant manufacturer Krones, Software AG and the online pharmacy Redcare Pharmacy (formerly Shop Apotheke) are moving up into the index of medium-sized stocks. Redcare and Krones were among the biggest MDax winners with price premiums of 1.4 and 0.6 percent.
The real estate group Aroundtown, the telecommunications provider United Internet, the wafer manufacturer Siltronic and the US telecommunications equipment supplier Adtran have been relegated to the SDax small-cap index.
United Internet was also downgraded by the British investment bank Barclays, but after the previous downward trend it held up comparatively well with an increase of almost 0.2 percent. Analyst Mathieu Robilliard justified his current “Equal Weight” vote with significantly reduced sales and earnings estimates (Ebitda) for the mobile phone subsidiary 1&1 and his new forecasts for the Internet services subsidiary Ionos. 1&1 fell 2.1 percent while Ionos lost 0.7 percent. Adtran defied relegation to the SDax with a plus of 1.2 percent.
The real estate group Dic Asset is no longer included in the small-cap index because it is the smallest index value in terms of freely tradable stock market value and therefore has to vacate its place in view of Evotec’s re-admission to the Dax family. The shares lost 2.2 percent. Evotec was removed from the MDax by Deutsche Börse in May because its annual report was not submitted by the deadline.
Source: Stern
