German Stocks Rise; K+S, Salzgitter, Volkswagen Shares Climb
German stocks rose following a report that showed business confidence in the country remained unexpectedly unchanged in May as booming exports and higher company spending boosted economic growth.
K+S AG climbed after Financial Times Deutschland said the company’s fertilizer unit has two bidders left. ThyssenKrupp AG and Salzgitter AG (SZG), Germany’s largest steelmakers, gained as metal prices rallied in London. Bayerische Motoren Werke AG (BMW) and Volkswagen AG (VOW) led carmakers higher.
The benchmark DAX Index increased 0.4 percent to 7,150.66 at the 5:30 p.m. close in Frankfurt, the first advance in three days and bringing this year’s gain to 3.4 percent. The broader HDAX Index also rose 0.4 percent today.
“Business confidence data gave the market some support and there are signs the Greek government is doing something to reduce its deficit,” said Andreas Lipkow, an equity trader at MWB Fairtrade Wertpapierhandelsbank AG in Frankfurt. “We can reach 7,300 in the DAX.”
The Ifo institute in Munich said its business climate index, based on a survey of 7,000 executives, held at 114.2 from April. Economists forecast a decline to 113.7, the median of 24 forecasts in a Bloomberg News survey showed.
The Greek government endorsed an accelerated asset-sale plan and 6 billion euros ($8.4 billion) of budget cuts to win extra aid and stem a market slide that threatens to swamp the most debt-laden euro-area nations.
K+S jumped 2.6 percent to 53.27 euros, the biggest advance in three weeks. The Compo consumer fertilizer unit may go to one of the two investors still bidding, of which one probably is Triton, FTD said, without citing anyone. K+S wants 200 million euros for the business, which this year targets sales of 450 million euros and earnings before interest, taxes, depreciation and amortization of 30 million euros, the newspaper said.
ThyssenKrupp, Germany’s largest steelmaker, advanced 1.2 percent to 32.46 euros, while Salzgitter, the second biggest, gained 0.8 percent to 50.24 euros. Aluminum, copper, lead, nickel, tin and zinc all rose on the London Metal Exchange. Commodities rebounded from the biggest drop in almost two weeks after Goldman Sachs Group Inc. said it’s turning “more bullish” on raw materials.
BMW, the world’s largest maker of luxury cars, rallied 1.9 percent to 60.28 euros, while Volkswagen, Europe’s biggest carmaker, added 1.5 percent to 122.55 euros. Automotive shares were among the best performers in the Stoxx Europe 600 Index today, rising 1.5 percent as a group.
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