German Stocks Rise on Bank Rescue Speculation; Banks Decline

By Jann Bettinga and Frances Robinson

Sept. 30 (Bloomberg) -- German stocks rose following their biggest drop in eight months after U.S. lawmakers said they plan to salvage a $700 billion bank-rescue bill, easing concern more economies will fall into recession.

The DAX Index rose 23.94, or 0.4 percent, to 5,831.02 in Frankfurt after falling 4.2 percent yesterday. The HDAX Index of the country's 110 biggest companies climbed 0.6 percent.

Hypo Real Estate Holding AG, Germany's second-biggest commercial-property lender, surged 63 cents, or 18 percent, to 4.15 euros after tumbling 74 percent yesterday, when news broke the company will receive a 35 billion-euro ($50 billion) loan guarantee to avert potential collapse.


Infineon Technologies AG, Europe's second-largest maker of semiconductors, rebounded, adding 25.5 cents, or 7 percent, to 3.915 euros. The shares dropped 25 percent yesterday on concern the planned disposal of memory-chip unit Qimonda AG may face competition for investors from a sale of Hynix Semiconductor Inc.

Commerzbank AG, Germany's second-biggest bank, slumped for a third day as Cheuvreux reduced its recommendation on the stock to ``underperform'' from ``outperform.'' Deutsche Bank AG, the country's largest bank, declined 2.2 percent.

The DAX Index has lost almost 10 percent in September, the worst monthly performance since January, as Lehman Brothers Holdings Inc. of the U.S. filed for bankruptcy and credit losses at financial firms worldwide reached $590 billion, spurring government bailouts and takeovers.

Commerzbank fell 55 cents, or 5 percent, to 10.40 euros, while Deutsche Bank lost 1.115 euros, or 2.2 percent, to 49.535 euros.

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

Arcandor AG (ARO GY) rallied 46 cents, or 25 percent, to 2.33 euros. The German retailer hopes to find a buyer for its majority stake in U.K.-based Thomas Cook Group Plc, Europe's second-largest travel company, within two to three months, the Financial Times Deutschland reported, citing unidentified company officials.

Balda AG (BAD GY) lost 8 cents, or 11 percent, to 66 cents. The maker of mobile-phone casings said it will sell a 12 percent stake in its China-based TPK Holding unit to partner Michael Chung, without disclosing a price for the deal.

Daimler AG (DAI GY) fell 1.51 euros, or 4.1 percent, to 35.40. Sal. Oppenheim Jr. & Cie. cut its recommendation for the world's second-largest maker of luxury cars to ``neutral'' from ``buy.''

Hornbach Holding AG (HBH3 GY) added 1.75 euros, or 3.4 percent, to 53.75 euros. The operator of home-improvement stores said second-quarter profit rose after selling more do-it- yourself products outside its home market.

ProSiebenSat.1 Media AG (PSM GY) fell 4 cents, or 0.8 percent, to 4.76 euros. Credit Suisse Group AG cut its share- price estimate for Germany's biggest private broadcaster 25 percent to 6.2 euros.

To contact the reporter on this story: Frances Robinson in Frankfurt at Frobinson6@bloomberg.net