German Stocks Fall for Sixth Day; SAP, Commerzbank Drop
German stocks fell for a sixth day, their longest losing streak since November 2011, amid disappointing earnings statements from some of the nation’s largest companies.
The DAX Index (DAX) fell 0.2 percent to 7,459.96 at the close of trading in Frankfurt, for a weekly loss of 3.7 percent. The gauge dropped this week amid a slump in commodity prices and as disappointing economic reports from the U.S. and China bolstered concern that a global recovery is faltering.
“We’ve seen some solid selling in the DAX for more than a week now and earnings are today’s culprit,” said Luis Benguerel, a trader at Interbrokers Espanola de Valores in Barcelona. “The index will find support soon, but in the current risk-off environment investors are choosing to wait.”
SAP declined 3 percent to 57.85 euros, its lowest price since Jan. 22. The largest maker of business-management software reported first-quarter software sales that trailed estimates after failing to close contracts in the Asia-Pacific region.
Commerzbank dropped 2.2 percent to 1.14 euros. “The first quarter of 2013 will be affected by one-off effects due to the planned job cuts,” Germany’s second-largest lender said in a written statement handed out at its annual shareholders’ meeting in Frankfurt today. The bank said in March that it would incur 500 million euros of costs related to job reductions in the first three months.
Lanxess AG (LXS) rose 2.2 percent to 52.63 euros. Shares in the chemical maker that joined the DAX in September have still lost 24 percent since Feb. 20. Analysts including Jaideep Pandya at Berenberg Bank said in February that Lanxess is a takeover target.
Continental AG (CON), Europe’s second-biggest maker of auto parts, added 0.5 percent to 82.60 euros, paring earlier gains of as much as 2.6 percent. The 14-day relative strength index for the shares ended yesterday and on April 17 below 30, the first time that has happened since the third quarter of 2011. The RSI, which measures the degree to which gains and losses outpace each other, is considered by analysts who use charts to make forecasts to show an oversold level when it goes below 30.
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