March 20 (Bloomberg) -- German stocks advanced, rebounding from a three-day decline, as European policy makers weighed options for Cyprus after lawmakers rejected a bank deposit levy.
Deutsche Bank AG and Commerzbank AG gained at least 1 percent as a gauge of lenders rose the second most of the 19 groups in the Stoxx Europe 600 Index. HeidelbergCement AG advanced to its highest price since October 2008, following a measure of European construction companies higher.
The DAX Index gained 0.7 percent to 8,001.97 at the close of trading in Frankfurt. The gauge has risen 5.1 percent this year as reports pointed to a strengthening global economy amid speculation that central banks will maintain stimulus measures. The broader HDAX Index increased 0.6 percent today.
“Cyprus is in the center of the discussions after the local parliament denied the short-term solution,” Roger Peeters, chief executive officer at Close Brothers Seydler Research in Frankfurt, wrote in an e-mail. “It will be important for the capital markets that politicians in the euro zone find a solution soon. Cyprus is small but the announcement effect should not be underestimated.”
The volume of shares changing hands in companies on the DAX was 16 percent lower than the average of the last 30 days, data compiled by Bloomberg showed.
Luxembourg Finance Minister Luc Frieden has called for the 17 euro-area finance ministers to reconvene as soon as possible to put together a new package for Cyprus, after the country’s lawmakers rejected the bank levy, throwing into limbo a bailout package designed to keep Cyprus in the euro.
Deutsche Bank AG, Germany’s biggest lender, gained 1.4 percent to 32.44 euros. Commerzbank AG, the country’s second largest, increased 1.2 percent to 1.21 euros.
HeidelbergCement, the world’s third-largest cement maker, advanced 2.4 percent to 58.17 euros as a gauge of European construction companies rose the most on the Stoxx 600.
Dialog Semiconductor Plc, a creator of energy-efficient, highly integrated mixed signal circuits, added 4.7 percent to 12.24 euros. Berenberg Bank AG upgraded the shares to buy from hold, citing full-year 2012 results that alleviated concern about the company’s development costs, acquisition risks and valuation.
Metro AG slipped 2.4 percent to 22.38 euros, paring yesterday’s gains. Germany’s biggest retailer forecast a decline in operating profit as it invests in its Cash & Carry unit and the economy remains challenging in southern and eastern Europe.
Rheinmetall AG slid 6.9 percent to 38.14 euros, its biggest decline since November 2011. The automotive, electronics, defense and engineering group forecast earnings before interest and taxes will fall to as little as 240 million euros in 2013 from 301 million euros in 2012, because of restructuring costs.
To contact the reporter on this story: Jonathan Morgan in Frankfurt at email@example.com
To contact the editor responsible for this story: Andrew Rummer at firstname.lastname@example.org