Oct. 10 (Bloomberg) -- German stocks tumbled for a fifth straight day, sending the benchmark DAX Index to its worst week on record, as concern deepened the credit crisis will drag the global economy into recession.

Deutsche Bank AG, the country's largest bank by assets, and Allianz SE, Europe's biggest insurer, sank more than 9 percent. Siemens AG paced declines among companies sensitive to economic growth. E.ON AG led utilities lower as crude oil futures dropped on speculation energy demand will slow.

The DAX Index lost 342.69, or 7 percent, to 4,544.31, the lowest since July 2005. The measure slumped as much as 12 percent earlier today. The HDAX Index of the country's 110 biggest companies fell 7 percent to 2,282.

``A very dangerous mix has taken place in the money and credit markets and hedge funds are clearly withdrawing flows from equities,'' said Francisco Salvador, director at Venture Finanzas SA in Madrid. ``We are waiting for some rational order to be restored, and very abrupt sell-offs are always followed by abrupt rebounds, but meanwhile we'll see panic.''

The DAX slid 22 percent this week, the steepest such slump on record, on concern efforts by central banks and governments to shore up the banking system won't prevent an economic standstill. The benchmark is down 44 percent this year as a financial crisis sparked by U.S. subprime-mortgage defaults blocked money markets and threatened the solvency of banks and other businesses.

Frozen Money Markets

The cost of borrowing in dollars in London for three months rose today after cash injections and interest-rate cuts by 10 major central banks failed to thaw a credit freeze.

Deutsche Bank sank 16 percent to 31.23 euros, while Deutsche Postbank AG dropped 15 percent to 22.62 euros.

Credit-default swap dealers set an initial value of 9.75 cents on the dollar for Lehman Brothers Holdings Inc. bonds in what may be the biggest-ever payout in the $55 trillion market.

Allianz fell 9.2 percent to 70.95 euros. Morgan Stanley cut its share-price estimate for the insurer 9.2 percent to 129 euros ``to reflect the decline in equity markets and other assets.''

Siemens, Europe's biggest engineering company, lost 7.6 percent to 46.80 euros.

E.ON, Germany's largest utility, slid 10 percent to 25.32 euros. RWE AG, the second-biggest, retreated 11 percent to 52.53 euros. Oil dropped $5 a barrel on concern in New York, heading for the steepest weekly decline since 2004.

Bayerische Motoren Werke AG, the world's largest maker of luxury cars, fell 8.8 percent to 19.63 euros. Daimler AG, the second-biggest, slipped 8.3 percent to 22.57 euros.

`Doom'

Porsche SE, the maker of the 911 sports car, declined 8.1 percent to 48.79 euros. Citigroup Inc. cut its share-price estimates and earnings projections for the three carmakers, saying the industry is headed for further ``gloom.''

Volkswagen AG, Europe's biggest carmaker, rallied 15 percent to 342 euros as short-sellers closed their positions, according to Christian Aust, an analyst at UniCredit Markets & Investment Banking.

The following stocks also rose or fell in German markets. Symbols are in parentheses.

Deutsche Lufthansa AG (LHA GY) dropped 99 cents, or 8.3 percent, to 10.89 euros. Europe's second-biggest airline said planes flew less full last month as the credit-market crisis deterred travel. The load factor, or proportion of seats filled, fell 1.9 percentage points from a year earlier to 80.1 percent in September, the carrier said.

Deutsche Telekom AG (DTE GY) slid 1.35 euros, or 13 percent, to 9, even as Europe's largest phone company stuck to its 2008 targets and said it's ``solidly financed.''

Hochtief AG (HOT GY) retreated 2.07 euros, or 8.6 percent, to 22.13, dropping for the seventh time in eight days. Basic Element, the investment group of Russia's richest man, Oleg Deripaska, said it ceded a 10 percent stake in Germany's biggest builder, less than a week after doing the same with Canada's Magna International Inc.

Leoni AG (LEO GY) fell 1.92 euros, or 12 percent, to 13.50. UniCredit slashed its share-price estimate for Germany's biggest maker of electrical cables for cars 50 percent to 25 euros.

Merck KGaA (MRK GY) lost 6.36 euros, or 9.3 percent, to 61.70. Goldman Sachs Group Inc. lowered its recommendation for the drugmaker to ``neutral'' from ``buy.''

ProSiebenSat.1 Media AG (PSM GY) slid for a sixth straight day, losing 32 cents, or 9.1 percent, to 3.21 euros. Citigroup lowered its share-price estimate for the country's biggest private broadcaster 53 percent to 2.80 euros.

Q-Cells AG (QCE GY) dropped 2.81 euros, or 7.6 percent, to 33.99, bringing this week's loss to 39 percent. Germany's biggest solar company said its Solibro GmbH solar-cell production venture will invest 165 million euros ($224 million) to expand output.

SAF-Holland SA (SFQ GY) fell 48 cents, or 15 percent, to 2.77 euros, extending a 40 percent slump from the previous session. Sal. Oppenheim Jr. & Cie. and Dresdner Kleinwort reduced their share-price estimates after the supplier of truck trailer frames cut its sales forecast yesterday.

Salzgitter AG (SZG GY) dropped 4.62 euros, or 8.5 percent, to 49.48. Germany's second-largest steelmaker raised its stake in Norddeutsche Affinerie AG to 20 percent and may increase it further to a blocking minority holding of 25 percent. Norddeutsche (NDA GY) lost 1.37 euros, or 4.7 percent, to 27.74.

To contact the reporter on this story: Alexis Xydias in London at axydias@bloomberg.net.

Last Updated: October 10, 2008 11:52 EDT