The German stock market again struggled to find a clear direction on Tuesday. At the beginning of the week, Dax Performance Index (INDEXDB :DAX) fluctuated between moderate losses and gains. Investors were cautious, especially as there was a lack of new upside momentum. At the same time, bargain hunters try their luck again and again.
After a weaker start, the Dax went up at lunchtime by 0.50 percent to 12,985.02 points. It is thus approaching the 13,000 point barrier again. The MDax hardly moved with minus 0.02 percent to 27,465.03 points. The EuroStoxx 50, the leading index of the euro zone, gained 0.42 percent to 3319.60 points.
Even if there is currently no sustainable reason for a pronounced risk-taking mood, as analyst Ulrich Wortberg from Landesbank Hessen-Thüringen Helaba said, according to market expert Andreas Lipkow from Comdirect Bank, investors in selected industries are always on the hunt for bargains. “At the moment, shares in chemical companies are in demand,” he said. With the purchase, market participants are betting on a potential economic recovery.
In addition, shares of large insurance companies are in demand with a view to the recovering US stock markets. “In recent years, many insurers have increasingly invested liquid funds in stock purchases and are now profiting from the record levels in the USA,” said Lipkow. However, since the buying momentum is not very strong , it will take some time before the Dax goes beyond 13,000 points again.
Covestro (1COV) shares stood out among the individual stocks in the Dax with a plus of 3.0 percent. The plastics manufacturer’s confidence for the third quarter continued to have an impact, especially as positive analysts now followed. For example, Barclays analyst Sebastian Satz raised the price target for the share to 44 EUR and reiterated his “Overweight” recommendation. Goldman Sachs was also positive.
Rheinmetall’s shares won the MDax 1.7 percent. The papers of the armaments company and auto supplier benefited from a report in the Hungarian press about a major order from Hungary for armored personnel carriers.
Evotec shares were among the favorites in the index of medium-sized stocks with plus 2.4 percent. In the morning, the drug researcher had a strategic alliance for therapies against kidney diseases with the Danish diabetes specialist Novo Nordisk announced.
The Lufthansa papers that came under pressure the day before recovered by 3.6 percent. The Swiss subsidiaries Swiss and Edelweiss received their state-guaranteed loans, which the government in Bern had already promised in May. However, they had been dependent on the German rescue package for Lufthansa. Easyjet also closes three bases in the UK, including Stansted.