Frankfurt Stock Exchange
Dax stabilizes after wave of sales
The Dax is the main stock index in Germany. photo
© Fredrik von Erichsen/dpa
After last week’s losses, major indices in the German stock market were able to stabilize in early trading on Monday. After an initially weak start, the Dax contained its losses and hovered around the end of Friday. Most recently, the leading German index fell 0.02 percent to 12,281.91 points.
After last week’s losses, major indices in the German stock market were able to stabilize in early trading on Monday. After an initially weak start, the Dax contained its losses and hovered around the end of Friday. Most recently, the leading German index fell 0.02 percent to 12,281.91 points.
According to experts, bargain hunters were mainly on the road at the beginning of the week. Any political consequences of the possible shift to the right in Italy after the parliamentary elections initially played no role in the morning.
The mid-market MDax was up 0.42 percent in the morning to 22,635.75 points. The stock market barometer for medium-sized stocks had already bottomed out for more than two years on Friday.
A wave of fears of a deep economic downturn swept through equity markets around the world last week. As a result, the Dax dropped to a low since November 2020 at around 12,181 points on Friday. These concerns were recently fueled by the hefty intervention of central banks to combat high inflation. There is a danger that the monetary watchdogs will overshoot and harm the economy. Despite the current gains, stockbrokers are currently seeing further downside potential.
On Monday, bargain hunters particularly grabbed those stocks where the most recent wave of sales had pushed prices down. These were mainly inventories from the pharmaceutical sector in the Dax. Share price gains at Fresenius, subsidiary FMC and Siemens Healthineers each amounted to more than one percent and shares in laboratory services provider Sartorius rose by more than two and a half percent.
After the recent fall in prices, technology stocks were also very much in demand across Europe. SAP in the Dax rose by almost two percent, for example, the same went for chip supplier Aixtron in the MDax. Because the industry is heavily credit-funded and therefore hit by rising interest rates, it has been under fire lately. JPMorgan analyst Mislav Matejka now sees a tactical entry point for investors, with the potential for a recovery in growth stocks “similar to what we saw in the summer,” the analyst wrote.
Investors also gripped companies that have received negative attention in the recent past with profit warnings or cashing in on annual targets, as shares of battery manufacturer Varta rose about 1.7 percent. For the forklift manufacturer Kion, it went up almost two and a half percent after the profit warning almost two weeks ago.
In contrast, the papers of the fertilizer company K+S stood out as the backlight in the middle value index with a minus of almost seven percent. They have fallen to a low point since February. Market observers referred to the increased producer prices, which slowed down the fertilizer industry.