By Stefanie Haxel
Nov. 10 (Bloomberg) -- German stocks advanced for a second day after China announced a $586 billion plan to spur growth in the world's largest developing economy.
ThyssenKrupp AG rallied 14 percent as Societe Generale SA upgraded shares of Germany's biggest steelmaker. Bayerische Motoren Werke AG and Daimler AG, the world's largest makers of luxury cars, added more than 3 percent.
The benchmark DAX Index increased 181.97, or 3.7 percent, to 5.120,43 as of 11:52 a.m. in Frankfurt. DAX futures expiring in December climbed 4.1 percent. The HDAX Index of the country's 110 biggest companies rose 3.8 percent.
``The impulse from China will overshadow local problems a little, it's important that market sentiment improves and on this background China's program was very important,'' said Michael Scholz, an equity strategist at WestLB AG in Dusseldorf. ``We've already seen a lot of negative news in the past two months.''
China joined governments and central banks from Washington and Tokyo to Frankfurt and London by lowering borrowing costs and injecting cash to avert a recession and unlock credit markets. The country accounted for 27 percent of global economic growth last year, according to International Monetary Fund estimates.
The DAX Index is down 37 percent this year on speculation bank bailouts in the U.S. and Europe won't prevent a recession as credit-related losses and writedowns approached $700 billion in the worst financial crisis since the Great Depression.
ThyssenKrupp rallied 1.93 euros, or 14 percent, to 15.90. Societe Generale raised its recommendation on the stock to ``hold'' from ``sell.''
Demand for Steel
Consumption of the metal may increase as China's government plans to boost investments for housing, infrastructure in rural areas, railways, roads and airports.
Salzgitter AG, Germany's second-largest steelmaker, surged 6.10 euros, or 13 percent, to 53.92. Kloeckner & Co. SE, a steel trader, added 1.33 euros, or 12 percent, to 12.18.
Siemens AG climbed 3.16 euros, or 7.3 percent, to 46.65. Europe's largest engineering company, which sells locomotives in China, has a target to raise sales in the Asian country by about 25 percent a year until 2010, driven by orders for transport and energy equipment.
BMW, the world's biggest maker of luxury cars, gained 84 cents, or 3.9 percent, to 22.40. Daimler, the second-largest, advanced 1.20 euros, or 4.7 percent, to 26.70.
The banks of the two carmakers and Volkswagen AG have agreed to request state guarantees for several billion euros from the government's 500 billion-euro ($643 billion) rescue package for the financial industry, Der Spiegel reported on its Web site.
The following stocks also rose or fell in German markets. Symbols are in parentheses. Symbols are in parentheses.
Aixtron AG (AIXA GY) increased 29 cents, or 8 percent, to 3.94 euros, snapping a three-day decline. Goldman Sachs Group Inc. lifted its share-price estimate for the equipment maker for the chip industry 20 percent to 3 euros.
Allianz SE (ALV GY) slipped 95 cents, or 1.5 percent, to 64.60 euros. Europe's largest insurer may have further writedowns of about 1 billion euros on its equity investments in the fourth quarter, Allianz Chief Financial Officer Helmut Perlet told reporters in a conference call today.
Allianz on Oct. 7 posted a 2 billion-euro net loss for the third quarter and warned it may miss operating profit targets.
Bilfinger Berger AG (GBF GY) increased 3.32 euros, or 9.2 percent, to 39.39, the steepest advance in almost three weeks. Germany's second-largest construction company raised its full- year operating profit target after the company's shift to building management and maintenance boosted third-quarter earnings.
CeWe Color Holding AG (CWC GY) slipped 53 cents, or 3.1 percent, to 16.56 euros. Analysts at NordLB downgraded shares of Europe's largest independent photograph developer to ``hold'' from ``buy.''
Colonia Real Estate AG (KBU GY) fell 6 cents, or 2.9 percent, to 2 euros. The property investor reported a third- quarter loss after the value of its properties and investments declined. WestLB AG lowered its share-price estimate 44 percent to 5 euros.
Jenoptik AG (JEN GY) dropped 14 cents, or 3.1 percent, to 4.37 euros, the lowest in almost two weeks. Deutsche Bank AG cut its recommendation for Europe's largest maker of traffic cameras to ``sell'' from ``hold.''
Norddeutsche Affinerie AG (NDA GY), Europe's largest copper refiner, rallied 3.14 euros, or 11 percent, to 31, the highest in a month. Copper prices surged as China, the world's largest user of industrial metals, unveiled its stimulus plan to sustain its economy.
United Internet AG (UTDI GY) rallied 42 cents, or 6.2 percent, to 7.18 euros, the biggest gain since Oct. 28. Credit Suisse Group AG raised its recommendation for Germany's third- largest Web-access provider to ``neutral'' from ``underperform.''
To contact the reporter on this story: Stefanie Haxel in Frankfurt at shaxel@bloomberg.net.
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