By Stefanie Haxel
Nov. 14 (Bloomberg) -- German stocks rose for a second day, led by Continental AG as Schaeffler Group reassured investors its acquisition of the car-parts maker will go ahead as planned.
Continental rallied 30 percent after Schaeffler said it will complete the filing of the deal with European Union antitrust authorities today. BASF SE gained 3.1 percent as UBS AG advised clients to buy shares of the world's largest chemical maker. ThyssenKrupp AG, Germany's biggest steelmaker, snapped a three- day slide after smaller rival Salzgitter AG posted a quarterly profit that beat analysts' estimates on a lower tax rate.
The benchmark DAX Index rallied 154.35, or 3.3 percent, to 4,803.87 as of 3:35 p.m. in Frankfurt, limiting this week's decline to 2.7 percent. DAX Index futures expiring in December gained 3.2 percent. The HDAX Index of the country biggest companies rose 3.1 percent.
Germany's DAX Index is down 40 percent this year on concern bank bailouts in the U.S. and Europe won't prevent a recession as credit-related losses and writedowns topped $950 billion in the worst financial crisis since the Great Depression. The benchmark trades at 10.8 the reported earnings of its companies, compared with the average of 13.99 for the past four years.
``Valuations are very attractive at the moment, that's what we saw in New York yesterday when bargain hunters caused the market to turn despite bad macro-economic data,'' Tilmann Galler, a client portfolio manager who helps oversee about $25 billion at JPMorgan Asset Management in Frankfurt, said in a Bloomberg Television interview. ``We seem to have reached a point at which investors can't be scared by much anymore.''
Continental
Continental surged 8.80 euros, or 30 percent, to 38.15, the steepest advance since at least 1992. Schaeffler, the family- owned ball-bearing maker that's acquiring the auto-parts and tiremaker said it's confident of receiving EU approval for the transaction within the 25-day review period.
BASF climbed 79 cents, or 3.1 percent, to 26.51 euros after UBS raised its recommendation to ``buy'' from ``neutral.''
``BASF is no longer trading on its (rapidly diminishing) earnings power but now offers attractive value in a blue chip cyclical,'' analyst Thomas Gilbert wrote in a note to clients today. ``We would argue that the dividend is well covered.''
ThyssenKrupp increased 46 cents, or 3.5 percent, to 13.79 euros. Salzgitter rose for the first time in four days, adding 2.05 euros, or 4.6 percent, to 46.30. Germany's second-largest steelmaker said third-quarter net income climbed 28 percent to 252.1 million euros ($320 million), beating the 12 percent gain expected by analysts in a Bloomberg News survey.
Deutsche Bank
Deutsche Bank AG rallied 1.13 euros, or 4.6 percent, to 25.64. Germany's largest bank is seeking to reclaim 72.5 million euros from an account at Lehman Brothers Holdings Inc., Frankfurter Allgemeine Zeitung reported, without saying where it got the information. The lender is taking legal steps at a New York-based court to regain the funds that were transferred by mistake to now-bankrupt Lehman in early October, FAZ said.
The following stocks also rose or fell in German markets. Symbols are in parentheses.
Bechtle AG (BC8 GY) gained 91 cents, or 8 percent, to 12.33 euros, the highest in more than a week. The computer and software retailer that went public in 2000 said third-quarter profit gained 17 percent to 13.3 million euros and confirmed its earnings target for 2008.
Celesio AG (CLS1 GY) climbed 50 cents, or 2.6 percent, to 19.63 euros, snapping a four-day slide. Deutsche Bank raised its recommendation on Europe's biggest drug wholesaler to ``hold'' from ``sell.''
Centrotherm Photovoltaics AG (CTN GY) surged 1.34 euros, or 6.6 percent, to 21.77, snapping a three-day slide. Bankhaus Lampe raised its recommendation on the solar-cell machinery company to ``buy'' from ``hold.''
Conergy AG (CGY GY) tumbled 28 cents, or 5 percent, to 5.32 euros, the lowest in two weeks. Germany's second-largest solar company by sales said it wants to raised 399.3 million euros selling new shares at 1.10 euros each.
Henkel AG & Co. KGaA (HEN3 GY) advanced 38 cents, or 1.7 percent, to 22.06 euros as ING Groep NV upgraded the maker of Loctite glue and Persil detergent to ``buy'' from ``hold.''
Hochtief AG (HOT GY) climbed for a second day, adding 2.32 euros, or 8.6 percent, to 29.17. Germany's biggest builder raised its forecast for full-year orders and said it remains unscathed by the global financial crisis. The company reiterated its 2008 forecast of increased sales and net income of more than the 140.7 million euros reported last year.
Premiere AG (PRE GY) declined for a second day, losing 19 cents, or 5.6 percent, to 3.21 euros. UniCredit Markets & Investment Banking cut its recommendation for Germany's biggest pay-television company to ``sell'' from ``hold.'
Solarworld AG (SWV GY) climbed 69 cents, or 4.3 percent, to 16.65 euros after Germany's third-largest solar company confirmed preliminary third-quarter results published on Nov. 3. Net income increased 17 percent 35.9 million euros in the period and Solarworld expects to exceed its profit forecast for the year, the company said.
To contact the reporter on this story: Stefanie Haxel in Frankfurt at shaxel@bloomberg.net.
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