(In the Xetra final report sent at 5:43 p.m., the last sentence of the fourth paragraph must read correctly: “In the second row, Varta fell by 4.8 percent, the share will probably vacate its place in the MDAX (NOT: DAX) in December and relegated to the SDAX.” The corrected version follows.)
XETRA-SCHLUSS/DAX with pullback – Brenntag very weak
By Herbert Rude
FRANKFURT (Dow Jones) — Courses on the German stock market weakened on Monday. The DAX fell by 1.1 percent to 14,383 points. The MDAX and TecDAX fell even more sharply by around 1 percent. “After the rally, the DAX is overbought by 2,700 points,” said one market participant. “Bad news is enough to make things go down more clearly,” he added. The occasion was now weak templates from China with the protests there against the zero Covid strategy. The development fueled uncertainty, also because the German economy is considered to be heavily dependent on China. Thomas Altmann from QC Partners also wanted to see a positive side of the situation: “Consolidation after such a strong movement can be healthy and positive for the medium-term price development,” says the asset manager. Brenntag stood out at the start of the week with a minus of 9.6 percent.
Brenntag came under pressure after confirming merger talks with US rival Univar Solutions. Since Univar is the undisputed market leader in the US, a merger could call the regulators into action, Citi analysts said. And while they believe Brenntag has solid cash generation and a strong financial position, analysts see the risk of a large capital raise if the deal goes through.
Airbus under pressure – deliveries could be delayed
Airbus fell by 5.7 percent to 107.36 euros. This was triggered by press reports that planned deliveries of medium-haul jets in 2023 could be delayed. The fall below the 112 mark also triggered pressure as many stop-loss levels were placed there following the rally since early October.
On the other hand, Henkel rose by 0.6 percent. “The stock is a typical laggard,” said one market participant. After the increase of a good 10 percent in just under three weeks, an end to the recovery should not come as a surprise, especially if the DAX continues to fall. Fresenius gained 0.5 percent after a buy recommendation from UBS. In the second row, Varta fell by 4.8 percent, the share is expected to clear its place in the MDAX in December and be relegated to the SDAX.
In the fourth row, the shares of the Adler Group recovered by 42 percent to EUR 2.53. The real estate group says it has reached an agreement with a core group of bondholders on new terms for the senior unsecured bonds it has issued. In addition, the provision of secured external financing for the group had been agreed.
INDEX last +/- % +/- % YTD
DAX 14,383.36 -1.1% -9.45%
DAX future 14,410.00 -1.0% -9.07%
XDAX 14,397.86 -1.0% -9.15%
MDAX 25,600.97 -1.4% -27.11%
TecDAX 3,073.46 -1.4% -21.60%
SDAX 12,331.15 -1.4% -24.88%
last +/- ticks
Bund future 140.33 -20
Index winners losers and turnover million euros million shares previous day
DAX 5 35 0 2,842.3 54.1 46.5
MDAX 1 46 1,400.0 27.1 26.2
TecDAX 3 27 0 641.2 20.7 16.1
SDAX 13 57 0 100.5 7.3 8.8
Contact the author: [email protected]
DJG/hru/raz/gos/mgo
(END) Dow Jones Newswires
November 28, 2022 13:42 ET (18:42 GMT)
Leverage must be between 2 and 20
No data