German Stocks Climb for Third Day as ThyssenKrupp, Allianz Gain

By Cornelius Rahn

Dec. 14 (Bloomberg) -- German stocks gained for a third day after Abu Dhabi provided $10 billion to keep Dubai’s Nakheel PJSC from defaulting.

The benchmark DAX Index advanced 1.1 percent to 5,819.36 as of 9:50 a.m. in Frankfurt, the highest since Oct. 21 based on closing levels. The measure has rallied 59 percent since this year’s low on March 6 as government spending and recovering exports helped to pulled Germany out of recession. The broader HDAX Index also rose 1.1 percent today.

Abu Dhabi’s pledge will allow Dubai World’s Nakheel real- estate subsidiary to make $4.1 billion of payments on bonds that mature today. Dubai World on Nov. 25 sought a “standstill” agreement on its debt, triggering a slump in equities worldwide.

ThyssenKrupp AG, the country’s largest steelmaker, gained 2 percent to 24.96 euros as metal prices rose in London. Salzgitter AG, the second-biggest, increased 1.8 percent to 65.68 euros, the biggest advance in two weeks.

Deutsche Bank AG, Germany’s largest lender, added 1.6 percent to 48.50 euros, while Allianz SE, the country’s biggest insurer, climbed 1.3 percent to 85.72 euros. Banks and insurers were among the best performers in the pan-European Dow Jones Stoxx 600 index today.

Daimler AG, the world’s second-largest manufacturer of luxury cars, rose 2.3 percent to 35.98 euros. The carmaker expects to outpace growth in China’s overall vehicle market next year. The total market will likely grow as much as 20 percent, Daimler spokesman Trevor Hale said. The company also it will triple production capacity at a Beijing venture on rising sales and anticipated demand for a new Mercedes-Benz E-Class sedan.

Volkswagen, Continental

Volkswagen AG, Europe’s biggest carmaker, climbed 1.7 percent to 83.08 euros. The company said it aims to capture as much as 10 percent of India’s car market in four to six years as it boosts sales in emerging-markets.

Continental AG, Europe’s second-largest auto-parts maker, added 2.3 percent to 37.22 euros, its biggest gain in more than a week. The stock was raised to “outperform” from “neutral” at Exane BNP Paribas.

The following shares rose or fell in German markets. Stock symbols are in parentheses.

Evotec AG (EVT GY) rallied 3.7 percent to 2.27 euros, set for the biggest gain this month. The biotechnology company said it received a milestone payment from Ono Pharmaceutical Co. Ltd. from its research collaboration aimed at identifying novel inhibitors for a protease target.

HeidelbergCement AG (HEI GY) climbed 1.3 percent to 47.62 euros, the second straight gain. Chief Executive Officer Bernd Scheifele said Germany’s biggest cement maker will start considering acquisitions by the end of next year, Euro am Sonntag reported.

Tognum AG (TGM GY) advanced 1.2 percent to 10.97 euros. The diesel-engine maker partly owned by Daimler said it won an order for emergency gensets to be installed in a Russian nuclear power plant. The gensets will be supplied in early 2012 and the order has a value of about 26 million euros, the company said.

Qiagen NV (QIA GY) added 1.9 percent to 15.28 euros, rising for a fifth consecutive day. The Dutch biotechnology company said it closed the purchase of privately held SABiosciences Corp.

To contact the reporter on this story: Cornelius Rahn in Frankfurt at crahn2@bloomberg.net