BASF Pulls Down Chemical Stocks as Forecast Cut Shocks Investors

DAX index information is displayed on a board inside the Frankfurt Stock Exchange, operated by Deutsche Boerse AG, in Frankfurt, Germany, on Monday, Feb. 27, 2017. Deutsche Boerse AG's $13 billion bid for London Stock Exchange Group Plc headed toward collapse after the U.K. market operator rejected demands by European regulators to sell one of its holdings.Photographer: Alex Kraus/Bloomberg

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By Gabriella Lovas

December 10, 2018 at 10:08 AM UTC

This article is for subscribers only.

BASF SE fell as much as 5.5 percent after the German chemical manufacturer cut its profit forecast Friday, making the industry’s SX4P the worst performing index on the region’s benchmark Monday. The company cited a drop in chemical prices, a low Rhine water level, an automotive slump and fallout from the U.S. trade spat with China.

Most analysts see the negative impact of the water levels as temporary and are more concerned about the trade war and the weak demand for cars. Some also anticipate that prices for the company’s TDI and MDI chemicals could stay low into 2019.