Germany's DAX Index Gains, Led by Daimler, Lufthansa, Infineon

By Henrietta Rumberger

Sept. 2 (Bloomberg) -- German stocks rose to a three-week high as a decline in crude oil eased concern higher fuel prices will spur inflation and curb earnings at carmakers and airlines.

Daimler AG and Deutsche Lufthansa AG rallied as crude traded near a five-month low. Infineon Technologies AG climbed the most in a month after the Digitimes reported Micron Technology Inc. may buy its memory-chip unit. Deutsche Boerse AG rose the most in four months.

The DAX Index advanced 89.44, or 1.4 percent, to 6,511.24 as of 12:44 p.m. in Frankfurt. DAX futures expiring in September increased 1.4 percent to 6,522.5. The HDAX Index of the country's 110 biggest companies also rose 1.4 percent.

``One of the most important influences for the market at the moment is the oil price,'' said Matthias Jasper, head of equities at WGZ Bank in Dusseldorf. ``Stocks like Infineon and Deutsche Boerse are driven by the individual news that helps the shares.''

The benchmark index for German equities has declined 19 percent this year on concern higher oil prices, accelerating inflation and more than $500 billion in credit-related losses will curb consumer spending and slow global economic growth.

Crude oil traded near its lowest in five months as producers and refiners prepared to restart output at facilities after Hurricane Gustav passed the U.S. Gulf Coast without causing major damage to offshore platforms.

Daimler, the world's second-largest luxury carmaker, gained 2.15 euros, or 5.3 percent, to 42.72 euros and Lufthansa, Europe's second-largest airline, increased 71.5 cents, or 4.8 percent, to 15.72 euros. Metro AG, Germany's largest retailer, rose 1.47 euros, or 3.8 percent, to 39.76 euros.

Infineon

``The drop in oil prices is good news for inflation,'' Joerg de Vries-Hippen, who oversees about $26 billion as chief investment officer for European stocks at Allianz Global Investors in Frankfurt, said in a Bloomberg Television Interview today. ``This creates a friendly environment for the moment.''

Infineon jumped 35 cents, or 5.9 percent, to 6.25 euros. Buying Qimonda would hand Micron the stake in Taiwan's Inotera Memories Inc. and let it license its technologies to the Taiwanese chipmaker, the Taipei-based, Chinese-language Digitimes newspaper said, without saying where it got the information.

Infineon, Europe's second-biggest maker of semiconductors, is the biggest shareholder of unprofitable Qimonda, with a 77.5 percent stake. Inotera is a computer-memory chipmaking venture between Qimonda and Taiwan's Nanya Technology Corp.

Deutsche Boerse, operator of the Frankfurt Exchange, climbed 4.22 euros, or 6.6 percent, to 68.11 after Atticus Capital LLC and Children's Investment Fund Management LLP, the two largest investors in Deutsche Boerse, said they may push for new management at the company that operates the Frankfurt Stock Exchange.

``Deutsche Boerse is jumping on the Atticus and TCI news,'' said Thomas Nagel, a trader at Equinet AG in Frankfurt. ``It seems that the two investors have mutated from short-term oriented investors to long-term investors.''

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

BASF SE (BAS GY) increased 65 cents, or 1.7 percent, to 40.07 euros. The world's biggest chemical producer and U.S.-based Reike Metals Inc. will sell a new product to be used in pharmaceutical and agricultural applications.

Hochtief AG (HOT GY) rose the most in more than a week, climbing 1.68 euros, or 3 percent, to 58.56 euros. Germany's biggest builder won 221 million euros ($321 million) in orders to strengthen a bridge and expand a refinery in Australia.

Lanxess AG (LXS GY) advanced 1.14 euros, or 4.4 percent, to 27.22 euros. The world's second-largest maker of butyl rubber used in tires raised its prices for synthetic rubber grades used in the automotive and mechanical engineering industries.

Repower Systems AG (RPW GY) lost 6.60 euros, or 2.8 percent, to 228.30 euros. Tulsi Tanti, the billionaire founder of Suzlon Energy Ltd., has submitted a request to the wind-turbine builder on a control and profit transfer agreement with SE Drive Technik GmbH, a subsidiary of the Suzlon group. A control and profit transfer agreement would result in the management of Repower being assumed by the majority shareholder, Repower said in an e- mailed statement.

Outside shareholders will receive an annual compensatory payment in accordance with Article 304 of the German Stock Corporation Act, according to the statement.

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