German Stocks Advance, Led by Lufthansa, Salzgitter, Daimler

By Daniela Silberstein

Sept. 22 (Bloomberg) -- German stocks climbed for the first time in three days, with the benchmark DAX Index resuming its six-month rally, on signs the global economy is improving.

Deutsche Lufthansa AG climbed 3.7 percent after Europe’s second-largest airline had its share-price estimate raised at CA Cheuvreux. Salzgitter AG advanced 2.7 percent after Credit Suisse Group AG lifted its share-price projection for the steelmaker. Daimler AG rose 2 percent after having its price estimate raised.

The benchmark DAX Index added 1.3 percent to 5,741 at 12:27 p.m. in Frankfurt. The measure has surged 57 percent since March 6 after companies reported better-than-estimated earnings and France and Germany unexpectedly exited recessions. The broader HDAX Index also increased 1.3 percent today.

The Asian Development Bank said the region’s economy, excluding Japan, will grow 3.9 percent in 2009, faster than a March estimate of 3.4 percent. Separately, Switzerland’s government also raised its forecast for the country’s economy and expects it to return to growth next year.

Lufthansa climbed 3.7 percent to 12.39 euros as Cheuvreux raised its share-price estimate to 15 euros from 11 euros. The bank also increased its 2010 earnings estimates for the industry in Europe and now expects “break-even or higher depending on the airline.”

Salzgitter

Salzgitter added 2.7 percent to 70.65 euros. Credit Suisse raised its share-price estimate for Germany’s second- largest steelmaker to 97 euros from 75 euros.

Larger rival ThyssenKrupp AG increased 1.8 percent to 24.60 euros. Basic resources shares climbed as prices of copper, lead, nickel and tin rose in London. Silver and gold also increased.

Daimler advanced 2 percent to 33.72 euros as Citigroup Inc. lifted its share-price projection for the world’s second-biggest maker of luxury cars to 36 euros from 34 euros.

Continental AG climbed 3.5 percent to 37.67 euros, the first gain in four days. Citigroup lifted its share-price estimate for the car-parts maker to 40 euros from 30 euros.

Bayerische Motoren Werke AG climbed 1.9 percent to 34.95 euros. The world’s largest luxury-car maker expects its Spartanburg, South Carolina factory will reach full technical capacity at the middle of next year and is in talks about raising Chinese production, Handelsblatt said, citing board member Frank-Peter Arndt.

Commerzbank AG gained 0.8 percent to 8.78 euros. Germany’s second-largest bank should be profitable in eastern Europe by 2011 at the latest thanks to cost reduction and overhaul measures, Boersen Zeitung reported, citing Andre Carls, head of the lender’s operations in the region.

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

Centrotherm Photovoltaics AG (CTN GY) rallied 1.93 euros, or 6.1 percent, to 33.52. The solar-cell machinery maker was rated “buy” in new coverage at Kepler Equities.

GEA Group AG (G1A GY) added 61 cents, or 4.3 percent, to 14.69 euros. The company whose machines milk a third of the world’s dairy cows said it will streamline its operations and cut the number of divisions to five to help cut production costs.

HeidelbergCement AG (HEI GY) jumped 2.26 euros, or 5.2 percent, to 45.98. Germany’s largest cement supplier was raised to “add” from “neutral” at WestLB AG, which said that cash inflow from the company’s share sale will help to reduce net debt “substantially.”

Q-Cells SE (QCE GY) gained 25 cents, or 1.8 percent, to 13.90 euros. Germany’s largest solar company won’t cut more jobs at its Bitterfeld, Germany plant as the site’s two new production lines are up to date, Financial Times Deutschland said, citing Chief Executive Officer Charles Anton Milner.

Separately, HSBC Holdings Plc raised its share-price projection to 14 euros from 11 euros.

Tognum AG (TGM GY) gained 23 cents, or 2 percent, to 11.52 euros. The diesel-engine maker partly owned by Daimler won a contract to supply MTU engines for the German Navy’s new combat group support vessel.

Wacker Chemie AG (WCH GY) added 1.22 euros, or 1.2 percent to 102.71. The maker of materials used in microchips had its share-price estimate raised to 125 euros from 110 euros at HSBC.

To contact the reporter on this story: Daniela Silberstein in Zurich at dsilberstei2@bloomberg.net.