German Stocks Rise to Record as DAX Gains for Fourth WeekSofia Horta e Costa
German stocks rose to a record, with the benchmark DAX Index posting its longest streak of weekly gains since November, as chemical-makers climbed and data showed demand in Europe’s largest economy jumped last quarter.
Lanxess AG advanced 1.5 percent after Goldman Sachs Group Inc. recommended buying its shares, while Symrise AG climbed 1.1 percent as the brokerage added the company to its conviction-buy list. RWE AG and EON SE rose at least 1.5 percent, following European utilities higher. Linde AG slipped 1.1 percent after Goldman Sachs downgraded the industrial-gas supplier.
The DAX rose 0.5 percent to 9,768.01 at the close of trading in Frankfurt. The benchmark gauge gained 1.4 percent this week, its fourth week of gains. The number of shares changing hands on the gauge was 25 percent lower than the average of the past 30 days at this time of the day, data compiled by Bloomberg show. The broader HDAX Index also rose 0.5 percent today.
“German growth is shifting, making Germany a little more resilient to jitters outside,” said Evelyn Herrmann, an economist at BNP Paribas SA in London. “As the euro-zone recovery will gain traction, and growth in the U.K. and the U.S. will remain robust, we expect German exports to grow stronger again. The main driver of our annual-growth forecast of 2.2 percent in 2014, however, will be domestic demand.”
A report today showed domestic demand in Germany climbed 1.9 percent in the first three months of this year, the biggest quarter-on-quarter gain since June 2010.
The Ifo institute’s business climate index, based on a survey of 7,000 executives, fell to 110.4 in May from 111.2 in April. Economists predicted a decline to 110.9, according to the median of 38 estimates in a Bloomberg News survey.
Lanxess advanced 1.5 percent to 51.43 euros. Goldman Sachs upgraded its rating on the shares to buy from neutral, saying volume growth may offset pricing challenges.
Symrise rose 1.1 percent to 38.48 euros. Goldman Sachs added the maker of fragrances and food flavorings to its conviction buy list, saying its acquisition of Diana Group will help accelerate earnings growth.
RWE gained 1.8 percent to 29.13 euros, for its best week in six months. EON rose 1.6 percent to 14.06 euros, capping its largest weekly rally since September. A gauge of European utilities on the Stoxx Europe 600 Index advanced to its highest level since May 2011.
Linde slipped 1.1 percent to 151 euros as Goldman Sachs cut its rating on the company to neutral from buy, citing the stock’s recent rally. Linde rose to its highest price since at least August 1992 on May 20.