German Stocks Decline as Banks Retreat; Infineon, SAP Advance (Bloomberg)
Deutsche Bank AG and Commerzbank AG lost more than 2 percent. Volkswagen AG common stock sank 4.7 percent as Qatar exercised options to raise its stake in the carmaker, reducing the amount of freely tradable common shares to below 10 percent. Infineon Technologies AG jumped 4.1 percent after Commerzbank analysts raised their recommendation for Europe's second-largest maker of semiconductors.
The DAX slipped 0.2 percent to 5,831.21, paring its gain for the week to 1.3 percent. The measure has rebounded 59 percent from this year's low on March 6 as Europe's largest economy ended its worst recession since World War II. The broader HDAX Index also fell 0.2 percent today.
The ECB raised its estimate for writedowns for the period of 2007 through 2010 by 13 percent to 553 billion euros ($789 billion) from 488 billion euros forecast in June. The central bank, which published its Financial Stability Review today, also said that "the surge in government indebtedness" around the world is a risk to financial stability and that some European banks are still reliant on emergency funding.
Deutsche Bank, the country's biggest bank, dropped 2.2 percent to 49.90 euros, while Commerzbank, the second-largest, lost 2.8 percent to 5.91 euros. Allianz SE, Europe's biggest insurer, slid 1.7 percent to 84 euros. Banks and insurers were the worst performers among 19 industry groups in the pan- European Dow Jones Stoxx 600 index today.
Volkswagen Stake
Volkswagen common shares slumped 4.7 percent to 76.25 euros, while the preferred stock slipped 0.4 percent to 65.95 euros. Europe's biggest carmaker said its common shares' free float is now below 10 percent after Qatar exercised options to raise its stake to 17 percent of voting rights. Volkswagen spokesman Michael Brendel said it is up to Deutsche Boerse AG to make decisions on the stock's listing in the DAX Index.
If the free float market value of a stock falls below 10 percent, it will be removed from the DAX within two days after an announcement from the bourse, according to the index rules.
Porsche, the maker of the 911 sports car, declined 2.2 percent to 43.63 euros. Qatar Holding Germany GmbH's direct voting rights in the company exceeded the 3 percent and 5 percent thresholds and amounted to 10 percent today, Porsche said. Separately, the carmaker reported a 40 percent drop in first-quarter unit sales.
Business Climate
The Munich-based Ifo institute's business climate index, based on a survey of 7,000 executives, rose to 94.7 from 93.9 in November. That compares with the 94.5 median forecast of 33 economists in a Bloomberg News survey. The index reached a 26- year low of 82.2 in March.
Infineon surged 4.1 percent to 3.58 euros, capping its biggest weekly gain since August. The stock was raised to "add" from "hold" at Commerzbank, which cited "a better- than-expected development in automotive end-market demand."
SAP AG, the world's biggest maker of business-management software, climbed 2.1 percent to 32.21 euros, the third advance this week. Technology shares gained today after profit at Oracle Corp. and forecasts from Research In Motion Ltd. beat estimates.
The following stocks rose or fell on German markets. Stock symbols are in parentheses.
Arques Industries AG (AQU GY) added 1.9 percent to 1.59 euros, the second advance this week. The investment company sold the British automotive glass specialist Auto Windscreens as part of a secondary transaction to a German-English family office. Arques said it booked net proceeds to the value of more than 10 million euros from its involvement with Auto Windscreens.
Augusta Technologie AG (ABE1 GY) rose for a sixth day, climbing 2.5 percent to 11.10 euros. The maker of sensors used in the health-care and automotive industries appointed Arno Paetzold as chief development officer as it expanded its management board.
MTU Aero Engines Holding AG (MTX GY) slid 1.6 percent to 38.24 euros, capping its first weekly decline since October. The German jet-engine maker was downgraded to "hold" from "buy" at Berenberg Bank. Credit Suisse Group AG rated the shares "neutral" in new coverage.
Roth & Rau AG (R8R GY) jumped 8.2 percent to 30.67 euros, the biggest advance this month. The German maker of equipment used to coat solar panels said it won a turnkey order from India valued at 68 million euros, adding that fourth- quarter new orders have gained. The company confirmed its 2009 sales and earnings forecasts.
TAG Immobilien AG (TEG GY) added 10 percent to 4.97 euros, the seventh straight gain for the longest winning streak since January 2007. The real-estate firm founded in 1882 to build a railway in Bavaria said it purchased a portfolio of residential real estate, most of it in Berlin. The transaction has a total value of 43 million euros, the company said.