Wednesday December 30th 2020
Update
Trading year ended
Dax ends impressive year-end rally
Shortened trading, thin sales, holiday season: the German stock market is slowly sliding out of the Corona year. In view of the past turbulent months, it is remarkable that the German stock market barometer closed with a plus.
In the end, the air is out: Europe's investors took their foot off the gas for the last few meters. Profit-taking and a stronger euro slowed the Dax and EuroStoxx50. "But a trend reversal looks different, which is why a look at the start of the year 2021 for the Dax should continue to be positive," said Jochen Stanzl, market analyst at the trading house CMC Markets.
The leading German index Dax closed 0.3 percent in the red at 13,719 points, after having reached a record high of 13,903 points the day before. For the MDax it fell by 0.4 percent to 30,796 jobs. The TecDax lost 0.2 percent to 3213 jobs.
"Driven by the hope of an foreseeable end to the pandemic and the Brexit agreement, the German benchmark index succeeded in a year-end rally," said analyst Christian Henke from the brokerage company IG. The Dax still has room for improvement. "The first milestone is then the psychological mark at 14,000 meters." Over the year, the index has gained 3.5 percent and has thus clearly outperformed other European indices. The indices of the second series of exchanges did even better in this period: the MDax of the medium-sized stocks managed an increase of 8.8 percent and the SDax small cap index even posted a gain of 18 percent.
Delivery are the big DAX winners
The EuroStoxx50 stepped on the spot at 3576 points. In London, the FTSE index rose slightly. Among the winners, the shares of Astrazeneca stood out with a plus of up to 1.8 percent. The pharmaceutical company was the first country in the world to receive approval for its corona vaccine in Great Britain. The papers of other vaccine developers also increased: Biontech rose by almost one percent, in the USA Pfizer and Moderna were in demand before the market.
In the Dax, the shares of Delivery Hero with a plus of 1.2 percent to the favorites. Over the year they even performed best with a gain of around 80 percent in the leading index. The company was only promoted to the top German stock exchange league in August for the payment processor Wirecard, which became insolvent due to an accounting scandal, and is benefiting from the trend towards online food deliveries.
At the bottom, the papers fell off MTU by around two percent. The collapse of air traffic in the wake of the corona pandemic not only weighed heavily on the airlines, but also on aircraft manufacturers such as Boeing and Airbus and their engine suppliers such as MTU. At MTU, the drop in 2020 will be around 16 percent.
Bitcoin was one of the stock market star of the year
The soaring Bitcoin caused a stir. The oldest and most important cyber motto rose to a fresh record high of $ 28,575.78, approaching the next psychologically important mark of $ 30,000. "Bitcoin is and will remain one of the biggest surprises in the year of the coronavirus pandemic and is the winner of the crisis," said analyst Timo Emden from Emden Research.
In view of the rampant pandemic on both sides of the Atlantic, investors see the crypto currency as an opportunity for a broader portfolio structure and protection. Investors also saw the entry of the payment service provider PayPal into the crypto industry as an accolade.
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