July 1 (Bloomberg) -- German stocks including E.ON AG and RWE AG rose. The country's two biggest utilities gained for a second day after Dresdner Kleinwort Wasserstein analysts said they expected both to benefit from higher power prices.

Altana AG tumbled after the nation's fifth-largest drugmaker ended cooperation with Pfizer Inc. on an experimental treatment.

The benchmark DAX Index added 10.99, or 0.2 percent, to 4597.27 as of 9:42 a.m. in Frankfurt, taking its weekly advance to 0.7 percent. DAX September futures fell 0.1 percent to 4619. The HDAX Index of the country's 110 biggest companies gained 0.2 percent to 2367.94.

Shares of E.ON, Germany's largest utility, added 77 cents, or 1.1 percent, to 74.45 euros. RWE, the nation's largest electricity producer, increased 72 cents, or 1.4 percent, to 54.10 euros. Dresdner lifted its share-price forecasts for both yesterday.

Altana sank 5.43 euros, or 11 percent, to 41.90 euros. The company said it and Pfizer, the world's biggest drugmaker, ended cooperation on developing and marketing its Daxas treatment for smokers' lung that failed to meet a goal in a clinical study. Altana said it plans to continue developing the drug on its own.

Dresdner cut the shares to ``sell'' from ``hold'' and lowered its share-price forecast to 30 euros from 39 euros.

The following stocks are making gains or losses. Stock symbols are in parentheses after the company names.

Fluxx AG (FXX GY) dropped 46 cents, or 4.5 percent, to 9.69 euros. The Internet gambling service said one of its board members is under investigation for unauthorized betting. Preliminary proceedings have been initiated against the executive, whom the company didn't name. Fluxx said it and its legal advisers regard the investigation as unfounded, and assume the proceedings will be stopped.

MediGene AG (MDG GY) plunged 2.45 euros, or 22 percent, to 8.80. The unprofitable biotechnology company said it needs to conduct further tests for its Polyphenon E green tea-based salve, which is intended to treat a precursor to skin cancer caused by exposure to the sun.

To contact the reporter on this story: Margo Towie in Brussels at mtowie@bloomberg.net.

Last Updated: July 1, 2005 03:57 EDT