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German Stocks Rise to Six-Week High; Carmakers, Postbank Gain

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Aug. 11 (Bloomberg) -- German stocks climbed to a six-week high on speculation a stronger dollar will boost earnings at companies that depend on revenue from the U.S.

Bayerische Motoren Werke AG and Daimler AG, the world's largest makers of luxury cars, led the advance. The automakers generate more than a fifth of their sales in the Americas. Heidelberger Druckmaschinen AG rallied for a fifth day. Deutsche Postbank AG, Germany's biggest consumer bank by clients, jumped the most since June.

The benchmark DAX Index increased 34.38 or 0.5 percent, to 6,596.03 at 2:24 p.m. in Frankfurt, the highest since June 25. DAX futures expiring in September added 0.6 percent to 6,625. The HDAX Index of the country's 110 biggest companies rose 0.5 percent.

``Export stocks that suffered in the first half from a weak dollar are now benefiting from the increase of the dollar,'' Michael Scholz, an equity strategist at WestLB AG in Dusseldorf, said in a Bloomberg Television interview. ``Companies that reported concerns about a strong euro are now benefiting.''

The dollar traded near a five-month high against the euro after policy makers said the European Central Bank remains focused on inflation.

BMW rallied for a second day, adding 1.12 euros, or 3.8 percent, to 30.55. The world's biggest maker of luxury cars made 23 percent of its revenue in the Americas in 2007, according to Bloomberg data. BMW scrapped its profit forecast on Aug. 1, citing falling U.S. sales and the dollar's decline.

`Larger Stake'

Daimler climbed 1.37 euros, or 3.3 percent, to 43.14, the highest in seven weeks. The second-largest maker of luxury cars generated about 20 percent of its revenue in the U.S. last year.

Separately, Abu Dhabi Investment Authority is interested in buying a ``larger stake'' in the world's second-largest maker of luxury cars, Focus magazine reported, citing unidentified people close to Daimler.

Heidelberger Druck, the world's largest maker of printing-presses, jumped 1.18 euros, or 8.9 percent, to 14.50. Chief Executive Officer Bernhard Schreier said June 10 the dollar would burden earnings this year.

``They have a dollar exposure that is very favorable,'' said Stefan Augustin, an analyst at BHF-Bank in Frankfurt who has a ``reduce'' recommendation on the stock. ``In an unhedged situation a 10 percent dollar change gives them 40 million euros ($60 million) in sales.''

Postbank Rebounds

MTU Aero Engines Holding AG, which got more than half of its revenue in North America last year, added 77 cents, or 3.3 percent, to 24.47 euros. Commerzbank AG raised its share-price projection 8.7 percent to 25 euros.

Postbank surged 1.80 euros, or 4.2 percent, to 44.70, the steepest advance since June 25. The stock tumbled 18 percent in the previous five weeks on speculation a sale of Deutsche Post AG's retail banking unit is looking more and more unlikely.

``Postbank shares have lost a lot recently, so there's potential for a rebound,'' said Konrad Becker, a Munich-based analyst at Merck Finck & Co who rates the shares ``buy''. He hasn't heard any news or speculation regarding the possible sale, he added.

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

Adva AG Optical Network (ADV GY) advanced 9 cents, or 4.5 percent, to 2.08 euros, the highest in six weeks. WestLB AG raised its share-price estimate for the maker of networking equipment whose customers include Deutsche Telekom AG 31 percent to 2.10 euros.

Conergy AG (CGY GY), Germany's second-largest solar company, added 33 cents, or 3.3 percent, to 10.23 euros, the fifth day of gains. LG Electronics Inc. of South Korea is among interested potential partners for a planned joint venture at Conergy's solar-cell plant on the Polish border, the Financial Times Deutschland reported, without saying how it got the information.

Paion AG (PA8 GY) climbed for a second day, adding 1 cent, or 0.8 percent, to 1.25 euros. The biotechnology company working with H. Lundbeck A/S said its first-half loss narrowed due to lower research costs.

Hamburger Hafen & Logistik AG (HHFA GY) fell for a second day, losing 76 cents, or 1.9 percent, to 40.40 euros. UniCredit Markets & Investment Banking lowered its share-price projection for the operator of Germany's biggest port 47 percent to 8 euros.

HCI Capital AG (HXCI GY) slipped 20 cents, or 2.7 percent, to 7.30 euros, the steepest drop in almost a month. The fund manager cut its 2008 earnings forecast after writedowns on investments in a fund holding U.S. commercial real-estate loans led to a second-half loss.

MPC Capital AG (MPC GY), which owns about 41 percent of HCI, sank 1.41 euros, or 4.5 percent to 30.15 euros. Germany's largest closed-funds manager also reduced its 2008 profit forecast because of writedowns at HCI.

QSC AG (QSC GY) surged 16 cents, or 7.4 percent, to 2.33 euros, the highest in almost two months. The phone and Internet-service provider said it will return to profitability in the second half after it reported a loss for the second quarter.

For related news:

To contact the reporter on this story: Stefanie Haxel in Frankfurt at shaxel@bloomberg.net.

To contact the editor responsible for this story: Daniel Hauck at dhauck1@bloomberg.net.

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