German Stocks Advance, Led by Deutsche Bank, Daimler, Lufthansa

By Henrietta Rumberger and Stefanie Haxel

Sept. 9 (Bloomberg) -- German stocks climbed for a second day as concern eased that credit-related losses will curb profits at banks and lower oil prices lifted airlines and carmakers.

Deutsche Bank AG rose to a four-week high and Commerzbank AG advanced 5 percent. Daimler AG, the world's second-largest maker of luxury cars, and Deutsche Lufthansa AG led gains among companies sensitive to fuel costs. Celesio AG jumped to a five- month high after CA Cheuvreux upgraded Europe's largest drug wholesaler to ``outperform.''

The DAX Index added 36.42, or 0.6 percent, to 6,300.16 as of 2:18 p.m. in Frankfurt. DAX futures expiring in September rallied 0.7 percent to 6,305. The HDAX Index of the country's 110 biggest companies rose 0.3 percent.

The benchmark index for German equities gained 2.2 percent yesterday on speculation the U.S. government's takeover of Fannie Mae and Freddie Mac will stabilize the mortgage market after credit losses and writedowns at financial firms worldwide topped $500 billion.

``What the example of Fannie Mae and Freddie Mac showed is that in case of emergency, there is always a solution,'' Achim Matzke, an equity strategist at Commerzbank AG in Frankfurt, said in a Bloomberg Television interview.

Deutsche Bank, Germany's largest, advanced 2.38 euros, or 4 percent, to 62.555, the highest since Aug. 12. Commerzbank, the second-biggest, gained 85 cents, or 5 percent, to 18 euros. Allianz SE, Europe's biggest insurer, increased 3.53 euros, or 3.2 percent, to 115.66.

Deutsche Postbank AG, the country's biggest consumer bank by clients, climbed 1.06 euros, or 2.4 percent, to 44.83.

Reviving Talks

Banco Santander SA, Spain's biggest bank, revived talks aimed at an acquisition of Deutsche Postbank after the lender's market value fell, two people with knowledge of the matter said. Santander is vying with Deutsche Bank for Postbank, said the people, who declined to be identified because the talks are private. Parent Deutsche Post AG added 8.5 cents, or 0.5 percent, to 15.795 euros.

Deutsche Post spokeswoman Nicole Mommsen said the company is still examining several options for the future of Postbank. Deutsche Bank spokesman Michael Lermer reiterated that the company would consider acquisitions if they make strategic sense and bolster shareholder value. Santander spokesman Peter Greiff declined to comment.

Crude oil for October delivery fell as much as 2 percent to $104.23 a barrel in New York after Saudi Arabia's oil minister said supplies are sufficient to meet demand, raising speculation that OPEC will maintain production levels when it meets today.

Daimler, Lufthansa

Daimler rose 1.05 euros, or 2.6 percent, to 41.435 euros. Bayerische Motoren Werke AG, the world's biggest luxury carmaker, gained 52 cents, or 1.8 percent, to 29.24 euros.

Lufthansa, Europe's second-largest airline, added 27 cents, or 1.8 percent, to 15.30 euros. Jet-fuel prices in northwest Europe declined for a ninth straight day, Bloomberg data show.

Bayer AG, Germany's biggest drugmaker, jumped 1.64 euros, or 3.1 percent, to 54.34, the steepest gain since July 25.

``There's speculation in the market today that Pfizer may bid for Bayer,'' said Manfred Groeschel, an equity trader at Merck Finck & Co. in Munich.

U.S.-based Pfizer Inc. is the world's largest drugmaker. Bayer spokesman Guenter Forneck declined to comment.

Celesio surged 2.75 euros, or 10 percent, to 30, the highest since April 8. Cheuvreux lifted its recommendation from ``underperform.''

A new pharmacy contract in England this week will add 150 million British pounds ($264 million) in new funds, removing the risk of further price cuts in Celesio's most important market, analyst Oliver Reinberg wrote in a note to clients today.

The following stocks also rose or fell in German markets. Symbols are in parentheses.

European Aeronautic, Defence & Space Co. (EAD GY) climbed 73 cents, or 4.8 percent, to 15.92 euros, advancing for a second day. The parent of planemaker Airbus SAS will shift some Airbus parts production to Tunisia as it seeks 1 billion euros ($1.42 billion) of savings from 2010, Le Monde reported, citing Chief Executive Officer Louis Gallois.

MediGene AG (MDG GY) added 7 cents, or 1.2 percent, to 5.80 euros. The biotechnology company said it will present clinical data for its cancer drug candidate EndoTAG-1 in Stockholm.

Patrizia Immobilien AG (P1Z GY) climbed for a second day, rising 11 cents, or 4.1 percent, to 2.77 euros. The real-estate investor sold properties in Dresden and Munich in separate transactions for a total of 78.5 million euros.

Sixt AG (SIX2 GY) dropped 75 cents, or 3.9 percent, to 18.36 euros, the lowest since June 2005. WestLB AG reduced its share- price estimate for Germany's largest car-rental operator 19 percent to 21 euros.

To contact the reporter on this story: Henrietta Rumberger in Frankfurt at hrumberger@bloomberg.net; Stefanie Haxel in Frankfurt at shaxel@bloomberg.net