By Stefanie Haxel
Dec. 8 (Bloomberg) -- German stocks rose for the first time in three days after U.S. President-elect Barack Obama pledged the biggest public works program in about 50 years to stimulate growth and create jobs.
Allianz SE surged 8.9 percent after U.S. insurer Hartford Financial Services Group Inc., which in October secured a $2.5 billion cash infusion from Allianz, lifted its 2008 profit forecast on Dec. 5. Siemens AG gained the most in two weeks after the Financial Times Deutschland said Europe’s largest engineering company will seek shareholder approval to increase capital to fund purchases.
The benchmark DAX Index gained 259.04, or 5.9 percent, to 4,640.51 as of 12:40 p.m. in Frankfurt. DAX futures expiring this month rose 6.4 percent. The broader HDAX Index added 5.7 percent.
“We are seeing the largest economy and liquidity push ever,” said Robert Halver, head of research at Baader Bank in Frankfurt. “Given that there are also huge measures from central banks under way, 2009 should offer good opportunities for stock markets and commodities which are currently bombed out.”
Barack Obama promised to make the “single largest new investment” in America’s roads and public buildings since the administration of Dwight D. Eisenhower in the 1950s to lift the sagging economy and create jobs.
Governments worldwide have introduced packages to buttress their economies from the worst financial crisis since the Great Depression as more than $31 trillion has been erased from the value of global equities so far.
Daimler
Daimler AG gained 7.5 percent, to 24.11 euros. The world’s second-largest maker of luxury cars has more than a fifth of its sales in the U.S., according to Bloomberg data.
Allianz, Europe’s largest insurer, rose 8.9 percent to 71.50 euros, the highest since Oct. 21. Hartford more than doubled its market value in New York trading on Dec. 5 after the insurer raised its full-year forecast for operating profit and said the capital outlook at its insurance unit was “strong.”
Siemens advanced 7 percent to 47.95 euros, the steepest increase since Nov. 24. The engineer plans to seek shareholder approval to increase capital by selling new shares and issuing convertible bonds, giving it additional funds for purchases, FTD said, citing an invitation to the Jan. 27 annual meeting.
Bayer AG climbed 7.3 percent to 39.60 euros. Germany’s biggest drugmaker and Johnson & Johnson’s experimental Xarelto medicine lowered the risk of deadly blood clots after knee and hip-replacement surgery compared with standard treatment in a pooled analysis of four trials.
Deutsche Post
Deutsche Post AG rose 4.1 percent to 10.50 euros, snapping a two-day drop. John Allan, chief financial officer of Europe’s biggest mail carrier, predicted the company will pay a dividend this year, Die Welt reported, citing an interview.
E.ON AG, Germany’s biggest utility, surged 8.9 percent to 25.60 euros. RWE AG, the second largest, gained 5.8 percent to 61.59 euros. German electricity for delivery in 2009, a European benchmark contract, rebounded from a 15-month low.
The following stocks also rose or fell in German markets. Symbols are in parentheses.
Air Berlin Plc (AB1 GY) gained 3.2 percent to 3.59 euros. Europe’s third-largest discount airline said load factor rose to 72.6 percent in November as it reduced capacity.
Celesio AG (CLS1 GY) increased 4.4 percent to 20.29 euros. Europe’s biggest drug wholesaler had its recommendation increased to “buy” from “accumulate” at Equinet AG.
Colonia Real Estate AG (KBU GY) climbed 9.3 percent to 1.99 euros. The property investor will sell several lines of business and is folding a number of divisions into one to cut 1.2 million euros in costs per year.
Deutsche Postbank AG (DPB GY) lost 3 percent to 13.35 euros. Germany’s biggest consumer bank by clients fell amid speculation it may need to ask the government for as much as 35 billion euros ($45 billion) of aid. Postbank spokesman Joachim Strunk said by phone today the speculation is “completely unfounded.”
Hochtief AG (HOT GY) jumped 10 percent, to 29.34 euros, the steepest gain in more than a week. Germany’s largest construction company bought back almost 611,000 of its own shares in the week through Dec. 5.
Infineon Technologies AG (IFX GY) dropped for a ninth day, losing 6.9 percent to 87.5 cents. Goldman Sachs Group Inc. cut its recommendation for Europe’s second-largest chipmaker to “neutral” from “buy.”
To contact the reporter on this story: Stefanie Haxel in Frankfurt at shaxel@bloomberg.net.
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