German Stocks Climb; Deutsche Boerse MAN Porsche Lead Advance
German Stocks Climb; Deutsche Boerse, MAN, Porsche Lead Advance
By Henrietta Rumberger
Feb. 8 (Bloomberg) — Germany;s benchmark DAX Index
advanced, led by Deutsche Boerse AG and MAN AG after brokerages
lifted their recommendations on the shares.
The DAX increased 33.56, or 0.5 percent, to 6,767.28. The
index lost 2.9 percent this week. DAX futures expiring in March
rose 35, or 0.5 percent, to 6,799 at 5:45 p.m. in Frankfurt. The
HDAX Index of the country;s 110 biggest companies advanced 0.5
percent.
“The market is very nervous at the moment, sentiment is one
of the main driving forces,;; said Manuel Martin, an equity
strategist at WGZ Bank in Frankfurt. “The mood has improved a
tiny bit, but with the weekend ahead, many investors want to
secure their positions.;;
Deutsche Boerse, operator of the Frankfurt exchange, climbed
for the first time in five days, adding 4.46 euros, or 4.1
percent, to 114.06 euros. WestLB raised its recommendation on the
shares to “hold;; from “reduce,;; saying the exchange operator
will benefit from stock market volatility.
MAN, Europe;s third-largest truckmaker, climbed 2.95 euros,
or 3.7 percent, to 81.73 euros after Deutsche Bank AG recommended
investors `buy;; the shares.
The stock;s low valuation is “too compelling to ignore,;;
the analysts including Peter Reilly in London wrote in a note to
investors today. The truckmaker “enters 2008 with a very full
order book and with new truck capacity coming on stream in low-
cost Poland. We think that MAN has potential to win market share
with the extra production capacity.;;
Porsche Gains
Porsche SE led car stocks higher after Morgan Stanley raised
the European auto industry to “in-line;; from “cautious.;;
Shares of the maker of the 911 sportscar rose 11.01 euros, or 1
percent, to 1,100 euros.
Daimler AG, the world;s second-largest maker of luxury cars,
added 34 cents, or 0.7 percent, to 51.04 euros.
Infineon Technologies AG, Europe;s second-largest maker of
semiconductors, sank 19 cents, or 3.3 percent, to 5.60 euros.
Citigroup Inc reduced its price estimate 27 percent to 10.60
euros. Lehman Brothers Holdings Inc. also cut its price
projection to 7.7 euros from 8.5 euros.
The following stocks also rose or fell in German markets.
Symbols are in parentheses.
Aareal Bank AG (ARL GY) climbed 1.13 euros, or 5.3 percent,
to 22.42 euros. The commercial-property lender rose as investors;
concern on potential losses related to subprime mortgages
abates.
“The market is recovering from the last days; losses when
Aareal has been punished without any bad news,;; said Martin
Peter, an analyst at Landesbank Baden-Wuerttemberg in Stuttgart
who recommends buying the shares. “Subprime exposure is much
more harmless at Aareal than at rival Hypo Real Estate.;;
Balda AG (BAD GY) tumbled for a second day, plunging 53
cents, or 11 percent, to 4.12 euros after analysts cut target
prices for the stock.
WestLB analyst Thomas Langer cut his target price for Balda
21 percent to 4.4 euros today, citing “a number of adjustments;;
that have led to lower estimates.
Balda yesterday said it anticipates 2008 revenue of $600
million and pretax profit of $35 million. Sven-Erik Hintz, an
analyst with Berenberg Bank, said this forecast may indicate
Balda;s touch-screen unit won;t meet growth targets. The company
has a stake in a display venture in China called TPK.
Bayer AG (BAY GY) advanced 30 cents, or 0.6 percent, to
54.64 euros. Trasylol, an anti-bleeding drug that was pulled off
the market last year by Germany;s biggest drugmaker, is safe when
used during a certain type of cardiac surgery, researchers said.
Centrotherm Photovoltaics AG (CTN GY) jumped 3.56 euros, or
8.6 percent, to 44.98 euros, it biggest rise since Jan. 22. The
solar-cell machinery company that first sold shares in October
won an order from Taiwan;s PolySilicon Corp. The order will
increase group earnings in 2009 and 2010, the company said today.
Daldrup %26amp; Soehne AG (4DS GY) increased 55 cents, or 2.4
percent, to 23.30 euros, rising for the first time in five days.
Equinet AG rated the stock “accumulate;; in new coverage.
Grammer AG (GMM GY) advanced 85 cents, or 4.8 percent, to
18.50 euros. The supplier of car interiors for Daimler AG said it
may reach its annual revenue target for 2009 a year earlier than
forecast.
KUKA AG (IWK GY) increased 77 cents, or 3.8 percent, to
20.95 euros, recouping some of yesterday;s 7.6 percent loss.
Equinet AG raised its recommendation on the maker of robots and
assembly lines formerly known as IWKA to “buy;; from
“accumulate.;;
Marseille-Kliniken AG (MKA GY) climbed for a third day, up
51 cents, or 4.2 percent, to 12.71 euros. The operator of nursing
homes said profit jumped more than fourfold to 12.1 million euros
($17.5 million) in the first half because of increased bed-use.
Polis Immobilien AG (PQL GY) climbed 70 cents, or 8.1
percent, to 9.35 euros. The property company that sold shares to
the public in March said 2007 profit rose almost 17-fold to 8.9
million euros on rental income.
Rheinmetall AG (RHM GY) added 98 cents, or 2.2 percent, to
45.74 euros. The German maker of car parts and military equipment
said it plans to take a 51 percent stake in South Africa;s Denel
Munitions Pty Ltd. to expand in defence technology.
To contact the reporter on this story:
Henrietta Rumberger in Frankfurt at
