German Stocks Rise; Deutsche Bank Soars as Profit Tops Estimates

German stocks climbed for a fifth day after Deutsche Bank AG reported second-quarter earnings that topped estimates, outweighing declines at SAP AG and Daimler AG.

Deutsche Bank rallied 4.5 percent. Fresenius Medical Care AG, the world’s biggest provider of kidney dialysis, surged 4.9 percent after the U.S. government released new rules on paying operators of dialysis centers. Air Berlin Plc soared 2.7 percent as Germany’s second-biggest airline said it reached an agreement with Oneworld Management Co. Ltd. on “key aspects” of becoming a member of the global alliance.

The benchmark DAX Index rose 0.2 percent to 6,207.31 at the 5:30 p.m. close of trading in Frankfurt. The measure has risen 4.2 percent this year as equity strategists at UBS AG and Deutsche Bank advised investors to increase holdings of the nation’s shares, arguing that they are more geared to global growth. The U.K.’s FTSE 100 Index has lost 0.9 percent and France’s CAC 40 Index 6.9 percent in the same period.

“Deutsche reported very well,” Ralph Silva, a strategist at London-based Silva Research Network said in a Bloomberg Radio interview. “If you’re brave, I’d go with the European banks. That’s where I’d put my money right now.”

Deutsche Bank Gains

Deutsche Bank AG gained 4.5 percent to 52.64 euros. Germany’s largest bank said second-quarter net income increased to 1.16 billion euros ($1.5 billion), beating the average analyst estimate of 1.05 billion euros.

Fresenius Medical rose 4.9 percent to 43.15 euros. The fee paid to dialysis centers will decline only 2 percent to $250 to $260 per treatment, which is a favorable outcome for the industry, said Arthur Henderson, an analyst for Jefferies International Ltd.

Air Berlin gained 2.7 percent to 3.60 euros. The airline’s agreement with Oneworld will help the carrier increase sales and lower costs, it said.

DAB Bank AG advanced 1.2 percent to 4.15 euros. The German online broker controlled by Italy’s UniCredit SpA said profit climbed 26 percent in the second quarter helped by lower costs. Net income rose to 6.91 million euros from 5.49 million euros in the year-earlier period.

SAP slid 2.2 percent to 36.43 euros after the world’s biggest maker of business-management software reported second-quarter net income of 491 million euros. Analysts had forecast profit at 525 million euros, the average of 15 estimates compiled by Bloomberg.

Daimler dropped 4.2 percent to 41.34 euros even after the world’s second-largest maker of luxury cars raised its 2010 operating profit forecast to 6 billion euros. The stock has rallied 16 percent this year through yesterday.

“Investors are selling on good news,” said Thomas Nagel, a trader at Equinet AG in Frankfurt. “Automobile shares had a good run in the last few weeks and investors were expecting good numbers from Daimler. Now that they have those numbers, they’re selling on them to take profit.”

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