Most German Stocks Rise as DAX Heads for Weekly Advance

Most German stocks rose, with the benchmark DAX (DAX) Index heading for its second weekly gain, as data showed China’s economic growth accelerated in the third quarter.

Rational AG (RAA) surged 4.7 percent after Bankhaus Lampe KG advised investors to buy the shares. Bauer AG (B5A) jumped the most in eight months after Berenberg Bank AG upgraded the stock. Adidas AG (ADS), the second-largest producer of sporting goods, gained 2.2 percent after Goldman Sachs Group Inc. added the company to its conviction buy list. SAP AG (SAP) slipped 1.3 percent.

The DAX added 0.3 percent to 8,837.83 at 3:29 p.m. in Frankfurt, extending its weekly gain to 1.3 percent. Three shares advanced for every two that fell. The gauge has climbed 2.8 percent this month as U.S. lawmakers reached a last-minute deal to end a fiscal impasse and optimism grew that Janet Yellen, nominated to head the Federal Reserve, won’t rush to withdraw stimulus. The HDAX Index rose 0.4 percent today.

“The third quarter has been stronger in China,” Witold Bahrke, who helps oversee $55 billion as a senior strategist at PFA Asset Management in Copenhagen, said by phone. “But there are also early signs that this will be as good as it gets and we will see a renewed slowdown in the fourth quarter, which is part of a bigger picture of a macro economic slowdown. This is a challenge for German exporters.”

China’s gross domestic product increased 7.8 percent in the third quarter from a year earlier, the National Bureau of Statistics said. That matched the median estimate of economists in a Bloomberg survey. The world’s second-biggest economy posted GDP growth of 7.7 percent and 7.5 percent in the first two quarters, slipping from a 7.9 percent expansion in the final three months of 2012.

Rational Rises

Rational, the biggest maker of automated cookers for professional kitchens, surged 4.7 percent to 218 euros after Bankhaus Lampe upgraded its recommendation on the shares to buy from hold, citing signs of recovery in Europe in the third quarter. The brokerage increased its price estimate on the shares to 230 euros from 200 euros.

Bauer jumped 6.6 percent to 20.80 euros, the biggest gain since Feb. 5, as Berenberg upgraded the shares to buy with a price estimate of 24 euros. The stock is cheap relative to earnings and is underperforming the construction industry, according to Berenberg.

Adidas climbed 2.2 percent to 83.45 euros after Goldman Sachs added the shares to its conviction buy list. Adidas will deliver sustained growth, according to the brokerage, which set a target price of 115.30 euros on the shares.

Metro AG (MEO), Germany’s biggest retailer, advanced 2.7 percent to 34.32 euros after Societe Generale SA increased its target price on the shares to 34 euros from 26 euros, citing growing confidence in the company’s home market.

SAP, the largest maker of business-management software, retreated 1.2 percent to 52.67 euros.

The volume of shares changing hands in DAX-listed companies was 84 percent higher than the average of the last 30 days, according to data compiled by Bloomberg.

To contact the reporter on this story: Jonathan Morgan in Frankfurt at jmorgan157@bloomberg.net

To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net

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