Monday 28 December 2020
Update
"It could hardly be better"
Dax soars to new heights
Investors are driving the German stock market to new heights shortly before the end of the year. The reason is the prospect of overcoming the economic weakness. The optimism is fed mainly from three sources.
At the start of the last week of trading of the year, several good pieces of news lifted the leading German index Dax to a new record high. The agreement on an EU-UK trade agreement, the signing of a new US economic stimulus package by President Donald Trump and the start of corona vaccinations in the EU created a buying mood. "The news and the mood on the stock market could hardly be better at the end of a turbulent stock market year," summarized market analyst Jochen Stanz from broker CMC Markets.
Shortly after the starting bell, the stock market barometer climbed to new heights and only stopped at 13,819 points. The German benchmark index then spent the trading day at this level and ended up closing 1.5 percent stronger at 13,790 points. The MDax gained 0.8 percent to 30,656 positions. The TecDax increased by 0.9 percent to 3212 counters. The leading euro zone index Eurostoxx 50 climbs by one percent.
In March, the Dax had stood at 8255 points. Within a short time he was burdened with corona worries and crashed by more than 40 percent. It had reached a record high in February. But recently the mood has fundamentally changed. Investors are now counting on a strong economic upswing. In addition, the central bank billions continue to flow around the globe – money that has to be invested somewhere.
In the Dax, almost all stocks made it over the line with profits. They were the undisputed leaders Delivery Hero, which gained 10.8 percent. The food delivery company with no German business has received approval for the high-growth joint venture with South Korean Woowa – on condition that the Korean subsidiary Yogiyo is sold. German postal service go up by 2.6 percent. Here CEO Frank Appel had promised new record quantities of parcels transported this year – and at the same time a record profit. Heidelberg printing machines closed 4.6 percent tighter. Shortly before the end of the year, the company sold a plot of land for a mid double-digit million euro amount. This could strengthen the equity capital, it said in the trade. Car values posted comparatively meager premiums. At the bottom they paid alone MTU one that was down 1.3 percent.
In the second row sorted themselves with Lufthansa and Fraport Two companies particularly hit by the Corona crisis topped the winners. Here the prospect of an upturn in tourism attracts investors. In addition, the airline has reduced costs in the Corona crisis much faster than planned, CEO Carsten Spohr told "Welt am Sonntag". While it went up by 5.2 percent for the airline, Fraport rose by 2.1 percent.
Feathers left at the bottom among others alongside others Aareal Bank. This could be related to the fact that even after the agreement between Brussels and London, uncertainties remain for the financial services sector. Also Commerzbank stepped on the spot. The bank announced that it would hire a further 610 million euros for job cuts, which will weigh on net income in the final quarter.
Put in the TecDax Nordex their ascent continued. For the wind turbine manufacturer, this is another 4.4 percent. In the current year, the paper has already increased in price by almost 80 percent.
.