German Stocks Gain Led by Deutsche Boerse MAN; Infineon Drops
German Stocks Gain, Led by Deutsche Boerse, MAN; Infineon Drops
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.
Infineon Technologies AG, Europe;s second-largest maker of
semiconductors, declined after several brokerages reduced their
price estimate on the shares.
The DAX increased 47.14, or 0.7 percent, to 6,780.86 at
3:59 p.m. in Frankfurt, after gaining as much as 1.8 percent in
earlier trade. The index lost 3.1 percent so far this week. DAX
futures expiring in March rose 42, or 0.6 percent, to 6,806. The
HDAX Index of the country;s 110 biggest companies advanced 0.7
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 AG, operator of the Frankfurt exchange,
climbed for the first time in five days, adding 2.44 euros, or
2.2 percent, to 112.04 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 2.05 euros,
or 2.6 percent, to 80.83 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.;;
Infineon sank 8 cents, or 1.4 percent, to 5.71 euros.
Citigroup Inc reduced its price estimate on the shares 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 1.42 euros, or 6.7 percent,
to 22.71 euros. The commercial-property lender rose as
investors; concern about 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.;;
Air Berlin Plc (AB1 GY) rose 6 cents, or 0.7 percent, to
10.52 euros on speculation the company may be a takeover target.
“Air Berlin;s market cap is so low that anyone seeking to
build up a strategic position in the central European market
could buy it very cheaply,;; said Klaus Breil, fund manager at
Cominvest Asset Management in Frankfurt, which oversees about
$95 billion.
Balda AG (BAD GY) tumbled for a second day, plunging 55
cents, or 12 percent, to 4.10 euros after analysts cut target
prices for the stock.
WestLB analyst Thomas Langer cut his target price for Balda
by 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 25 cents, or 0.5 percent, to
54.59 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 3.28 euros, or
7.9 percent, to 44.70 euros. 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 30 cents, or 1.3
percent, to 23.05 euros, rising for the first time in five days,
after Equinet AG rated the stock “accumulate;; in new coverage.
Grammer AG (GMM GY) advanced 20 cents, or 1.1 percent, to
17.85 euros. The supplier of car interiors for Daimler AG said
it may have annual revenue of 1 billion euros ($1.5 billion) in
2008, earlier than forecast.
In November, the auto parts maker said it would reach that
goal in 2009.
KUKA AG (IWK GY) increased 1.06 euros, or 5.3 percent, to
21.24 euros. Equinet AG raised its recommendation on shares of
the maker of robots and assembly lines formerly known as IWKA to
“buy;; from “accumulate.;;
Marseille-Kliniken AG (MKA GY) climbed 53 cents, or 4.3
percent, to 12.73 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 89 cents, or 10
percent, to 9.54 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.
Porsche SE (POR3 GY) 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 8.01
euros, or 0.7 percent, to 1,097 euros.
Rheinmetall AG (RHM GY) added 99 cents, or 2.2 percent, to
45.75 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
