Feb. 1 (Bloomberg) -- Germany's benchmark DAX Index rose for the first time in three days, led by ThyssenKrupp AG after the country's largest steelmaker said it will buy back shares.

Merck KGaA climbed as Merrill Lynch & Co. recommended buying the stock. Singulus Technologies AG, a maker of machines that replicate compact discs and DVDs, rallied after it agreed to buy OC Oerlikon Corp.'s Blu-Ray DVD business.

The DAX increased 70.85, or 1 percent, to 6,922.60 as of 11:23 a.m. in Frankfurt. The measure is on course for its first weekly gain this year. DAX futures expiring in March added 50.50, or 0.7 percent, to 6,961. The HDAX Index of the country's 110 biggest companies advanced 1.1 percent.

ThyssenKrupp rallied 1.64 euros, or 5 percent, to 34.38 euros. The company said it will buy back as much as 3 percent of the capital stock, or around 15.8 million shares.

Merck climbed 2.71 euros, or 3.3 percent, to 85.61 euros. Shares of Europe's biggest biotechnology company were upgraded to ``buy'' from ``neutral'' by Merrill Lynch & Co. analysts.

``Profits will not suffer the aggressive decline currently being priced into the shares,'' analysts including Erica Whittaker in New York wrote in a report to investors today. ``We expect positive news on cancer drug Erbitux'' to support the shares.

Singulus rallied 1.13 euros, or 13 percent, to 9.76 euros. OC Oerlikon, the world's biggest maker of spinning machines for textiles, sold its Blu-Ray DVD business to Singulus. Terms weren't disclosed.

``Through this acquisition, Singulus expands its market leadership,'' Alexandra Hauser, an analyst at Landesbank Baden- Wuerttemberg in Stuttgart, wrote in a report to investors today.

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

Adidas AG (ADS GY) added 80 cents, or 1.9 percent, to 43.28 euros. The world's second-largest sporting goods maker is not planning any big acquisitions for the next 12 to 24 months, Chief Executive Officer Herbert Hainer said at the Boston College Executives' Club lunch yesterday.

Bayerische Motoren Werke AG (BMW GY) increased 42 cents, or 1.1 percent, to 37.22 euros. The world's largest maker of luxury cars said 2007 sales in China jumped 42 percent to 51,588 vehicles as economic growth spurred demand.

CTS Eventim AG (EVD GY) advanced 58 cents, or 2.1 percent, to 27.94 euros after Morgan Stanley raised its share-price projection for the ticketing company that markets Bruce Springsteen to 36 euros from 31 euros.

FranconoRheinMain AG (F7R GR) tumbled 12 cents, or 6.6 percent, to 1.71 euros after Franconofurt AG said it will sell its 54.4 percent stake, or all of its 15,226,000 shares for 1.50 euros apiece, in the real-estate company to two subsidiaries of Grainger Plc.

Infineon Technologies AG (IFX GY) rose 10 cents, or 1.5 percent, to 6.87 euros. Europe's second-largest maker of semiconductors won't provide additional money to its memory-chip unit Qimonda AG, German magazine Focus reported, citing an interview with Infineon Chief Executive Officer Wolfgang Ziebart.

Kloeckner & Co. AG (KCO GY) increased 77 cents, or 2.8 percent, to 28.25 euros after Credit Suisse Group raised its recommendation on shares of the steel trader to ``outperform'' from ``neutral.''

Manz Automation AG (M5Z GY) climbed 5.04 euros, or 3.8 percent, to 137.47 euros. The maker of robotic systems bought a 90 percent stake in Boehm Electronic Systems Slowakei s.r.o for 4.3 million euros ($6.4 million).

Commerzbank AG raised its price projection on the shares to 160 euros from 150 euros.

Nordex AG (NDX1 GY) climbed 85 cents, or 3.2 percent, to 27.78 euros. Investtech.com upgraded shares of the wind turbine maker to ``positive.''

Rofin-Sinar Technologies Inc. (RSI GY) lost 1.04 euros, or 3.5 percent, to 28.33 euros after DZ Bank AG downgraded shares of the laser maker to ``sell'' from ``buy,'' saying that ``valuation lies nearly 25 percent above the laser peer group.''

To contact the reporter on this story: Henrietta Rumberger in Frankfurt at hrumberger@bloomberg.net.

Last Updated: February 1, 2008 05:36 EST