May 27 (Bloomberg) -- German stocks rose, following the benchmark DAX Index’s first weekly decline in more than a month, as technology and auto shares advanced.
SAP AG gained 2.1 percent after the world’s largest maker of business-software systems was said to have abandoned talks to buy Jive Software Inc. Commerzbank AG added 4.5 percent after Equinet Bank AG upgraded Germany’s second-largest lender. Praktiker AG plunged to the lowest price since its initial public offering after Commerzbank downgraded the shares.
The DAX Index climbed 0.9 percent to 8,383.3 at the close of trading in Frankfurt, halting a two-day decline. The gauge dropped 1.1 percent last week amid concern the U.S. Federal Reserve will reduce its stimulus measures. Equity markets in the U.K. and the U.S. are closed for public holidays today. The HDAX Index also increased 0.9 percent today.
“It’s still equities that probably offer -- from a relative and absolute perspective -- the best outlook,” David Wartenweiler, chief investment officer at Habib Bank AG Zurich, told Francine Lacqua on Bloomberg Television. “This is where money is going to flow since a lot of investors are still underinvested on the equities side.”
The volume of shares changing hands in companies listed on the DAX was 60 percent lower than the average of the last 30 days, according to data compiled by Bloomberg.
SAP added 2.1 percent to 59.89 euros. People familiar with the matter said the maker of enterprise-resource planning applications halted its talks with Jive, which has a market value of more than $1 billion. SAP decided that Jive’s products overlapped too much with its own, one of the people said.
Aixtron SE, a maker of equipment for the semiconductor industry, advanced 2.4 percent to 12.58 euros, halting a three-day slide.
Daimler AG and Bayerische Motoren Werke AG gained 2 percent to 48.36 euros and 1.4 percent to 71.88 euros, respectively. A gauge of auto-related shares rose 1.1 percent, for the best performance on the Stoxx Europe 600 Index.
Commerzbank rallied 4.5 percent to 8.02 euros. Equinet raised Germany’s second-largest bank to buy from sell, saying that the low price presents an opportunity to buy the shares. Commerzbank has tumbled 37 percent from this year’s high on Jan. 10, while the DAX has gained 8.8 percent.
Medigene AG surged 16 percent to 1.08 euros after saying that SynCore Biotechnology Co. will acquire a 6.09 percent stake in the company. SynCore will pay for the phase-three clinical trial for Medigene’s breast-cancer drug EndoTAG-1.
Praktiker AG tumbled 6.4 percent to 96.4 euro cents, the lowest price since the retailer held its IPO in 2005. Commerzbank downgraded the stock to sell from reduce, saying that cold, wet weather has lowered demand for the company’s products.
To contact the reporter on this story: Tom Stoukas in Athens at firstname.lastname@example.org
To contact the editor responsible for this story: Andrew Rummer at email@example.com