From Herbert Rude
FRANKFURT (Dow Jones) – The prospect of a quick availability of the coronavirus vaccines and the announcement of a regulated handover of office during the US presidency drove the German stock market up on Tuesday. The DAX rose 1.3 percent to 13,292 points and ended trading at its highest closing level since February 21. Another positive response was that the future US President Joe Biden, the former Federal Reserve chief Janet Yellen wants to make the new finance minister. The index reform of Deutsche Börse was also a big topic on the market. Among other things, it affects the DAX, which will comprise 40 instead of 30 stocks from September next year.
In the market, investors are betting on a normalization of life and the economy in the coming year, which is also likely to be associated with greater mobility of the people. In the auto sector, Daimler gained 3.5 percent, BMW 3.8 percent and VW 3.9 percent, and Continental gained 6.3 percent. In the travel sector, Lufthansa rose by 7.1 percent; in the slipstream, MTU rose by 5.9 percent. For this, among other things, were defensive Real estate stocks avoided: Vonovia lost 2.4 percent and Deutsche Wohnen 2.2 percent.
“The environment has brightened further,” said a trader. Another attack on the resistance zone around 13,300 points is looming in the DAX. An attempt to do this had failed on Monday. Should the DAX rise above 13,317 points, an increase towards 13,470 points and beyond to the record level of almost 13,800 points is possible. The SDAX, which is already on a record course, also gives cause for optimism.
DAX with 40 stocks in the future
After much already indicated, it is now official: from September 2021 the leading index DAX will be expanded by ten to 40 values. This means that in future it will represent around 82 percent of the overall German market instead of around 75 percent as before. The MDAX, which is being reduced by 10 to 50 values, is more suffering. As early as December 2020, all future DAX candidates must show a profit on an EBITDA basis before they can be accepted.
As of September this year, the only thing that matters for those who have been promoted and relegated will be size, the table on share turnover on the stock exchange will be abolished. Instead, only a minimum level of liquidity is required. Above all, DZ Bank highlights the higher transparency requirements for DAX members as positive.
According to the current status, Airbus, Zalando, Symrise, Sartorius, Siemens Energy, Brenntag, Qiagen, Hannover Re, Siemens Healthineers and LEG Immobilien are potential newcomers. However, market strategists advise against relying on potential newcomers now, as a lot can shift until next September.
Deutz shifts medium-term targets – share in the red
The engine manufacturer Deutz has warned that the medium-term targets for 2022 will probably not be achieved until 2023/24. The value was down 10 percent.
For the Sixt share, however, it went up by 3.7 percent. Sixt expects consolidated operating sales of 1.5 billion euros in 2020, and before taxes, the group expects a loss of 70 to 95 million euros in continuing operations.
Around 82.7 (previous day: 68.6) million shares with a value of around 4.19 (previous day: 3.13) billion euros were traded in DAX stocks in Xetra trading. All 20 index stocks posted gains.
INDEX last +/-% +/-% YTD
DAX 13.292,44 +1,26% +0,33%
DAX-Future 13.291,50 +0,98% +1,80%
XDAX 13.299,08 +0,86% +1,25%
MDAX 29,029.42 + 0.11% + 2.53%
TecDAX 3.018,53 -1,16% +0,12%
SDAX 13.654,56 +0,78% +9,13%
last +/- ticks
Bund-Future 175,24 -18
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DJG / game / ros
(END) Dow Jones Newswires
November 24, 2020 11:52 ET (16:52 GMT)
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