Bloomberg News

German Stocks Little Changed; HeidelbergCement Advances

February 05, 2013

German stocks advanced, after the DAX Index fell the most in more than six months, as investors awaited a report on U.S. service-industries growth.

HeidelbergCement AG (HEI) gained 1.7 percent as HSBC Holdings Plc added the cement maker to its Europe Super Ten portfolio. Munich Re climbed 2.4 percent after saying it will increase its dividend and reporting full-year net income that beat estimates. Deutsche Telekom AG (DTE) lost as a gauge of telecom stocks fell the most among the 19 industry groups in the Stoxx Europe 600 Index. (SXXP)

The DAX added 0.3 percent to 7,658.06 at 12:42 p.m. in Frankfurt. The measure fell the most since July yesterday amid corruption allegations against Spanish Premier Mariano Rajoy and uncertainty ahead of Italian elections this month. Spain’s 10- year government bond yields climbed to an eight-week high today. The broader HDAX Index also gained 0.3 percent today.

“The selloff that started yesterday has halted for the time being,” Guillermo Hernandez, head of trading at Fpm Frankfurt Performance Mgmt AG, who helps manage about 500 million euros ($665.7 million), wrote in an e-mail. “The pressure on Italian and Spanish bonds started an expected correction. The DAX (DAX) is defending support lines and the ISM data from the U.S. this afternoon may lead the way for the market.”

The volume of shares changing hands on the DAX was 62 percent higher than the average of the last 30 days, according to data compiled by Bloomberg.

U.S. Services

Data at 10 a.m. New York time may show that service industries in the U.S. grew in January at about the same pace as in the prior month. The projected 55 reading in the Institute for Supply Management’s non-manufacturing index would follow December’s 55.7 result, the highest level in 10 months, according to the median forecast in a Bloomberg News survey.

HeidelbergCement increased 76 cents to 46.55 euros. The world’s third-largest cement maker replaced Alstom SA in HSBC’s Europe Super Ten portfolio.

Munich Re added 3.25 euros to 137 euros. The biggest reinsurer said it plans to increase its dividend for last year by about 12 percent after fourth-quarter profit exceeded analysts’ forecasts.

Net income after minority interests fell to about 480 million euros from 627 million euros a year earlier, the company said in a statement today, citing preliminary figures. That was more than the 448.3 million-euro average estimate of 10 analysts surveyed by Bloomberg. The reinsurer proposed raising the dividend for 2012 to 7 euros a share from 6.25 euros.

Deutsche Telekom, Europe’s second-largest telecommunications company, slipped 0.9 percent to 8.77 euros.

RWE AG and EON SE, Germany’s largest utility companies, climbed 1.3 percent to 27.79 euros and 1.1 percent to 12.84 euros, respectively, as a gauge of utilities companies gained the second most in the Stoxx 600.

To contact the reporter on this story: Jonathan Morgan in Frankfurt at jmorgan157@bloomberg.net

To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net


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