German stocks advanced for a sixth day to a record high as shares of automakers rallied and Deutsche Post AG rose after reporting better-than-forecast earnings.
Deutsche Post advanced to an almost five-year high. Daimler AG led automakers higher. Commerzbank AG tumbled to its lowest price in at least two decades after announcing details of its capital increase. Siemens AG fell for the first time in six days as Goldman Sachs Group Inc. predicted the company will miss its next-year profit target.
The DAX Index advanced 0.7 percent to 8,339.11 at the close of trading in Frankfurt, for its longest winning streak in almost 14 months. The benchmark rallied for three successive weeks as companies reported better-than-forecast results and optimism increased that central banks will maintain economic stimulus. The broader HDAX Index added 0.8 percent today.
German investor confidence rose less than economists forecast in May. The ZEW Center for European Economic Research in Mannheim said its index of investor and analyst expectations, which aims to predict economic developments six months in advance, increased to 36.4 this month from 36.3 in April. Economists forecast a gain to 40, according to the median of 38 estimates in a Bloomberg News survey.
Deutsche Post AG rose 3.9 percent to 19.56 euros, its highest price since June 2008. Europe’s largest postal service said first-quarter net income fell 5.9 percent to 498 million euros from a year earlier. Earnings exceeded the 441.6 million-euro average of five analyst estimates compiled by Bloomberg.
Daimler AG, the third-biggest luxury-vehicle maker, advanced 3.1 percent to 45.97 euros. A gauge of carmakers climbed the most among the 19 industry groups in the Stoxx Europe 600 Index.
Bayerische Motoren Werke AG, the largest maker of luxury cars, increased 1.7 percent to 73.31 euros. Volkswagen AG, the world’s second-biggest carmaker, gained 2.1 percent to 160.25 euros. Continental AG, Europe’s second-largest supplier of auto parts, climbed 2.1 percent to 98.21 euros.
Commerzbank dropped 6.3 percent to 9.31 euros, for its lowest price since at least 1992. Germany’s second-biggest lender said it will raise 2.5 billion euros ($3.25 billion) in the fifth capital increase in four years as it seeks to repay debt from a government rescue. The company is offering 20 shares for every 21 held by investors at 4.50 euros apiece.
Siemens retreated 0.5 percent to 81.31 euros. Europe’s biggest engineering company will achieve so-called sector profit of 10.7 percent in the year to end September 2014, missing its own target of 12 percent, Goldman Sachs analysts wrote in a note dated yesterday. They cut their price estimate for the stock by 11 percent to 80 euros.