Nov. 10 (Bloomberg) -- German stocks fell for the first time in five days, snapping the longest winning streak since September, after a report showed investor confidence declined more than forecast in November.

Volkswagen AG tumbled on Qatar’s plans to sell preferred stock in the carmaker, while Bayerische Motoren Werke AG dropped 2.2 percent. Henkel AG and Fresenius Medical Care AG led rising shares in the benchmark DAX Index. Bilfinger Berger AG surged 7.6 percent as WestLB AG advised investors to buy the shares following the construction company’s earnings report.

The DAX Index slipped 0.1 percent to 5,613.20. The measure has still climbed 53 percent from this year’s low on March 6 as companies reported better-than-estimated earnings and the country’s economy unexpectedly exited the recession. The broader HDAX Index decreased 0.2 percent today.

“We have recovered very rapidly from last week’s lows so the market is taking a breather right now,” said Markus Steinbeis, head of equity portfolio management at the German unit of Pioneer Investments, which oversees about $221 billion globally. “The market is slightly overbought in the short-term and investors are in a more defensive mood.”

The ZEW Center for European Economic Research in Mannheim said its index of investor and analyst expectations, which aims to predict developments six months ahead, dropped to 51.1 from 56 in October. The median forecast in a Bloomberg News survey of 39 economists was for a decline to 55.

Volkswagen, BMW

Volkswagen common stock slid 8 percent to 102 euros, and preferred shares sank 16 percent to 60.22 euros. Qatar Holding LLC, part of the country’s sovereign wealth fund, plans to sell as much as 25 million of its preferred shares in the German carmaker, or about half its total stake in the company.

BMW, the world’s biggest maker of luxury cars, declined 2.2 percent to 32.70 euros, the first drop in five days.

Henkel AG, the maker of Persil detergent, advanced 1.9 percent to 32.40 euros, while Fresenius Medical Care AG, the world’s largest provider of kidney dialysis, added 2.2 percent to 35.67 euros.

Investors should increase holdings of continental European stocks as part of a global equity portfolio as the region typically outperforms when expectations for interest rate hikes increase, said Credit Suisse Group AG. The brokerage switched from an “underweight” to an “overweight” stance for the first time since 2007, according to Credit Suisse’s London-based global equity strategist Andrew Garthwaite.

‘Particularly Attractive’

The economic recovery in Germany is stronger than the rest of Europe and looks “particularly attractive,” he wrote in a report to clients today.

Bilfinger Berger soared 7.6 percent to 52 euros, steepest gain since March. WestLB raised its recommendation for the country’s second-biggest builder to “buy” from “add,” saying the third-quarter performance was above expectations. Bilfinger Berger today said net income in the period declined to 7 million euros ($10.5 million) from 54 million euros.

The company’s planned share sale of its Australian division may value the division at close to 600 million euros, according to the median estimate of four analysts.

The following shares rose or fell in German markets. Stock symbols are in parentheses.

Gagfah SA (GFJ GY) declined 2.1 percent to 6.47 euros. Germany’s largest publicly traded property company reported a wider third-quarter loss after its apartments dropped in value.

Qiagen NV (QIA GY) rallied 4.5 percent to 15.51 euros, the highest closing price in two months. The Dutch biotechnology company reported third-quarter adjusted net income of $53.5 million, compared with $42.4 million in the year-earlier period. Qiagen also said it’s raising its forecast for adjusted diluted earnings per share for fiscal 2009.

Rational AG (RAA GY) increased 2.9 percent to 108 euros. The world’s largest maker of automated cookers said it returned to growth in its home market of Germany and sees sales rising next year if the global economy rebounds. WestLB raised its recommendation on the stock to “add” from “neutral.”

To contact the reporter on this story: Adria Cimino in Paris at acimino1@bloomberg.net; Julie Cruz in Frankfurt at jcruz6@bloomberg.net.

Last Updated: November 10, 2009 12:09 EST