German Stocks Rise to a Record on ThyssenKrupp ForecastJonathan Morgan
German stocks advanced to a record as ThyssenKrupp AG increased its full-year earnings forecast.
ThyssenKrupp jumped 4.1 percent after also reporting its first quarterly profit since 2012. RTL Group SA rose 2.3 percent after Societe Generale SA recommended investors buy shares in the broadcaster. EON SE retreated 1.3 percent after saying that net income fell.
The DAX Index added 0.5 percent to 9,754.43 at the close in Frankfurt. The benchmark rallied the most this month yesterday as Sky Deutschland AG climbed after British Sky Broadcasting Group Plc started talks to buy the broadcaster of Bundesliga soccer games. The HDAX Index gained 0.6 percent today.
“We have had some good figures today from ThyssenKrupp,” Christian Schmidt, an analyst at Helaba Landesbank Hessen-Thueringen in Frankfurt, said in a telephone interview. “We are near the top and we will see if that move is substantial.”
A gauge of investor confidence fell for a fifth month in May. The ZEW Center for European Economic Research said its index of investor and analyst expectations, which aims to predict economic developments six months in advance, slid to 33.1 from 43.2 in April. The median economist forecast had called for a decline to 40, according to a Bloomberg survey.
The volume of shares changing hands today in DAX-listed companies was 22 percent greater than the 30-day average, data compiled by Bloomberg show.
ThyssenKrupp jumped 4.1 percent to 22.14 euros. Germany’s largest steelmaker said net income reached 269 million euros ($369 million) in the three months through March, compared with a loss of 129 million euros a year earlier. ThyssenKrupp posted 586 million euros of earnings before interest and taxes in the 12 months through last September. The company said it would almost double its Ebit in the current financial year.
RTL Group climbed 2.3 percent to 78.33 euros. Societe Generale upgraded its recommendation to buy from hold, predicting that the broadcaster will pay a special dividend.
Daimler AG, the owner of Mercedes Benz, added 1.8 percent to 66.48 euros. Mercedes reported a 14 percent jump in sales in April from a year earlier, beating 12 percent growth at Audi and a 7.8 percent gain for the BMW brand.
EON slipped 1.3 percent to 13.40 euros. Germany’s biggest utility by market value said underlying net income, the measure it uses to calculate payouts to shareholders, fell to 1.22 billion euros in the first quarter from 1.41 billion euros a year earlier. That matched the average of analyst estimates compiled by Bloomberg. Sales slid 11 percent to 31.8 billion euros.