German Stocks Fall From Record as Infineon, Evotec SlipJonathan Morgan
German stocks fell from a record as declines in Infineon Technologies AG offset gains in Deutsche Wohnen AG.
Infineon, Europe’s second-largest semiconductor maker, retreated 5.6 percent after predicting a drop in first-quarter profitability. Deutsche Wohnen added 1.1 percent after saying nine-month profit rose 65 percent from a year earlier. Henkel AG, the maker of Loctite glue, climbed to its highest price since at least 1992 after raising its full-year profit target.
The DAX Index fell 0.3 percent to 9,076.48 at the close of trading in Frankfurt. The gauge rose 0.8 percent last week after better-than-forecast U.S. economic growth and payrolls data. It has gained 19 percent this year as central banks around the world pledged to leave interest rates low for a prolonged period. The broader HDAX Index dropped 0.5 percent today.
“Equity markets are taking a breather today after the recent run to all-time highs, with an increasing number of stock holders grabbing the opportunity of the recent strength to get rid of holdings,” Christoph Hock, an equity sales trader at Alpha Wertpapierhandels GmbH in Frankfurt, wrote in an e-mail.
The Communist Party of China’s central committee concluded its third plenary meeting to outline the direction of economic reforms, the first such gathering under the presidency of Xi Jinping. Policymakers agreed that markets should play a “decisive” role in allocating resources, the official Xinhua News Agency reported, citing a communique from the gathering.
Infineon dropped 5.6 percent to 6.88 euros. Earnings before interest and taxes, which the manufacturer calls segment result, will total 8 percent to 10 percent of sales in the three months through December. That compares with the fourth-quarter margin of 14.1 percent. A quarter-on-quarter sales decline will be “significantly more pronounced” for the power-management and chip-card and security businesses, Infineon said in a statement.
Evotec AG, the drug research and development company, tumbled 16 percent to 4.06 euros, its biggest drop in nine years, after posting a nine-month operating loss of 4.2 million euros ($5.6 million).
Gagfah SA slid 1.8 percent to 10.50 euros. The second-biggest owner of German homes said third-quarter profit fell 3.9 percent after the sale of apartments reduced rental income. Funds from operations excluding asset sales dropped to 31.9 million euros from 33.2 million euros a year earlier.
Lanxess AG fell 4.7 percent to 49.86 euros after lowering the top end of its profit forecast for 2013. The chemical maker adjusted its 2013 earnings before interest, tax, depreciation and amortization pre-exceptionals prediction to between 710 million euros and 760 million euros, compared with an earlier estimate of between 700 million euros and 800 million euros.
Deutsche Wohnen climbed 1.1 percent to 14.11 euros. Germany’s second-largest residential landlord by market value said nine-month funds from operations excluding divestments, a measure of a property company’s ability to generate cash, climbed to 86.3 million euros from 52.4 million euros a year earlier.
Henkel added 1.3 percent to 82.68 euros. The maker of Fa deodorant raised its full-year profit goal to about 15 percent of sales from 14.5 percent after third-quarter earnings beat estimates, helped by growth at its laundry and home-care unit.
The volume of shares changing hands in DAX-listed companies was 16 percent higher than the average of the last 30 days, according to data compiled by Bloomberg.