German Stocks Fall, Led by Carmakers; Deutsche Post, SAP Fall

By Stefanie Haxel

Dec. 11 (Bloomberg) -- German stocks declined amid concern a $14 billion bill designed to prevent the collapse of U.S. carmakers may be blocked by opposition in the Senate.

MAN AG, Europe’s third-largest truckmaker, and Daimler AG dropped for the first time in four days. Deutsche Post AG fell 3.4 percent as the Financial Times Deutschland reported Europe’s biggest mail carrier is facing increased competition. SAP AG, the world’s largest maker of business-management software, lost 2.2 percent after the Bitkom industry group forecast Germany’s information technology market will stagnate next year.

The benchmark DAX Index declined 12.38, or 0.3 percent, to 4,792.5 as of 12:22 p.m. in Frankfurt. DAX futures expiring this month fell 0.3 percent. The broader HDAX Index retreated 0.3 percent to 2,375.18.

The U.S. House yesterday approved a loan package to rescue General Motors Corp., Chrysler LLC and others, backed by the Bush administration and Democratic leaders. The measure was sent to the Senate, were opposition is growing.

“The outcome here remains unclear as it faces opposition from Republicans,” Commerzbank AG analysts Daniel Schwarz and Gregor Claussen wrote in a note to clients today. If the bill won’t be passed, this “could trigger a collapse of the U.S. auto industry, which would cause cascading bankruptcies in the supplier industry.”

MAN fell 2.2 percent to 35.80 euros. Daimler, the world’s second-largest maker of luxury cars which has about a fifth of its sales in the U.S., lost 3.8 percent, to 24.915 euros.

Deutsche Post, SAP

Deutsche Post retreated for the first time in four days, sliding 3.4 percent to 10.80 euros. The postal service faces competition from parcel-delivery companies Hermes Logistik Gruppe and DPD, which are considering setting up a joint venture, the FTD reported, citing no one.

SAP sank 2.2 percent to 26.175 euros. Germany’s market for phone equipment, software and online services will show no growth in 2009, Berlin-based Bitkom said during a telephone conference today. In September, the group still anticipated the market to expand 1.5 percent next year. This year, the market will grow 1.2 percent, down from 1.8 percent predicted earlier.

Salzgitter AG, the country’s second-largest steelmaker, dropped 4 percent to 50.48 euros. ThyssenKrupp AG, Germany’s largest steelmaker, slid 0.4 percent to 17.53 euros.

Finish competitor Outokumpu Oyj predicted a fourth-quarter loss, postponed spending and pledged job cuts after a faster- than-expected decline in demand.

Kloeckner & Co. SE, a steel trader, sank 1.1 percent to 11.52 euros.

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

Escada AG (ESC GY) dropped 4.9 percent to 3.66 euros. Credit Suisse Group AG rated the maker of luxury women’s clothes “underperform” in new coverage, citing the absence of a “convincing positive trigger.”

IVG Immobilien AG (IVG GY) rallied 11 percent to 4.20 euros. WestLB AG confirmed a “buy” recommendation on Germany’s largest commercial property lender following a meeting with the new Chief Executive Officer Gerhard Niesslein.

Niesslein, who took office on Nov. 1, “has an ideal profile to deal with the current situation at IVG,” analysts Georg Kanders and Thomas Effler wrote in a note to clients today.

Pfeiffer Vacuum Technology AG (PFV GY) climbed 1.4 percent to 42.60 euros. WestLB AG raised its recommendation for the maker of vacuum pumps used in the production of DVDs and instant coffee to “buy” from “neutral.”

Q-Cells AG (QCE GY) plunged for a third day, declining 12 percent to 18.59 euros. Germany’s largest solar company was lowered to “sell” from “neutral” at UBS AG after scraping its earnings outlook for 2008 and 2009 on Dec. 9.

The fourth quarter of 2008 “marks the beginning of a several quarters with weak growth, industry over-capacity, pricing pressure and shrinking margins,” analyst Patrick Hummel wrote in a note today. “We think another profit warning for full-year 2009 is virtually inevitable.”

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