German stocks advanced for the third day in four after Deutsche Post AG (DPW), the world’s biggest carrier of air and sea freight by volume, reported a profit.
Bonn-based Deutsche Post gained 2.6 percent as first- quarter earnings before interest and taxes beat estimates and Chief Financial Officer Lawrence Rosen predicted growth in the U.S. and Europe in an interview on Bloomberg Television. Infineon Technologies AG (IFX) rose 2.4 percent after saying it plans to return capital to investors. Munich Re climbed 2.7 percent as BofA Merrill Lynch Global Research recommended buying the shares.
The benchmark DAX index (DAX) gained 112.57, or 1.5 percent, to 7,523.09 at 2 p.m. in Frankfurt. The gauge fell 1.1 percent yesterday amid renewed concern that government debt in Europe’s peripheral countries is unmanageable. The broader HDAX Index also rose 1.5 percent today.
“Despite renewed concerns surrounding Greece’s ability to handle its debt matters, the DAX opened higher supported by Infineon, which announced its share buyback program, and Deutsche Post, whose reported numbers exceeded analysts’ expectations,” said Anita Paluch, a sales trader at ETX Capital in London.
Deutsche Post rallied 2.6 percent to 13.83 euros, the highest price since Feb. 18. First-quarter Ebit increased 23 percent to 629 million euros, beating the average estimate of 588 million euros based on a Bloomberg survey of 14 analysts. Sales rose 6.9 percent to 12.8 billion euros.
Rosen predicted Deutsche Post will grow in the U.S. and Europe on Bloomberg Television’s “Countdown” with Mark Barton. He also said the company’s U.S. turnaround was “absolutely” secure in an interview with CNBC television.
Infineon, Europe’s second-largest chipmaker, increased 2.4 percent to 8.19 euros after saying it plans to return up to 300 million euros of capital to investors up to March 2013, according to a statement after the close of trading yesterday.
The company said it may buy back as many as 40 million shares. The share buyback authorization was granted at Infineon’s annual general meeting in February, according to the statement.
Munich Re jumped 2.7 percent to 113.10 euros after BofA Merrill Lynch raised its recommendation on the world’s biggest reinsurer to “buy” from “neutral.”
Centrotherm Photovoltaics AG surged 4.1 percent to 38.85 euros as the maker of solar-panel production lines said first- quarter profit jumped 85 percent and orders almost tripled as Chinese manufacturers raced to build factories.
To contact the editor responsible for this story: Andrew Rummer in London at email@example.com