Bloomberg News

German Stocks Rise for Second Day After Euro-Area Data

February 13, 2013

German stocks advanced for a second day after reports showed euro-area industrial output increased in December and U.S. retail sales rose in January.

Wirecard AG jumped to the highest in almost six weeks after Berenberg Bank upgraded its recommendation for the stock. Kabel Deutschland Holding AG surged by a record after a person with knowledge of the matter said Vodafone Group Plc is considering a bid for Germany’s largest cable provider.

The DAX added 0.7 percent to 7,711.89 at the close in Frankfurt. The benchmark gauge has risen 1.3 percent so far this year, the second-worst performance among the 24 developed markets tracked by Bloomberg. The broader HDAX Index climbed 0.8 percent today, while MDAX Index, a measure of midcap companies, rallied to a 25-year high.

“Sentiment is better,” Robert Halver, head of capital markets research at Baader Bank AG in Frankfurt, said in a telephone interview. “If the world economy is about to have a renaissance, beginning in the second quarter of this year, this is enough to help the German market today.”

The number of shares changing hands in companies listed on the DAX was 25 percent lower than the average of the past 30 days, data compiled by Bloomberg showed.

Industrial Output

Factory production in the 17-nation euro currency bloc rose 0.7 percent in December from the previous month, when it declined a revised 0.7 percent, the European Union’s statistics office in Luxembourg said. Economists had forecast a gain of 0.2 percent, according to the median of 41 estimates in a Bloomberg News survey.

In the U.S., President Barack Obama said he would pursue a trade agreement with the EU to expand the world’s largest economic relationship, while at the same time finishing discussions for a Pacific-region accord.

Sales at U.S. retailers grew in January, a report showed. The 0.1 percent climb followed an unrevised 0.5 percent increase in December, according to Commerce Department figures. The advance matched the median forecast of 80 economists surveyed by Bloomberg.

The MDAX gained 1.7 percent to 13,003.14, the highest level since January 1988. “The DAX’s little brother has reached a new all time high which is a good sign for an upturn,” Halver said.

Wirecard, a provider of Internet-payment and processing services, gained 1.4 percent to 18.83 euros, the highest price since Jan. 3, after Berenberg Bank upgraded the stock to buy from hold.

Kabel Deutschland surged 8.8 percent 69.17 euros, the biggest increase and the highest price since it sold shares to the public in March 2010. Vodafone is considering a bid for the company to expand in the country’s pay-TV and Internet market, said a person who asked not to be identified because the plan is private. Vodafone hasn’t yet contacted Kabel Deutschland about its intention, the person said.

Carl Zeiss Meditec AG jumped 2.5 percent to 25.01 euros, the highest price in 12 years, after Deutsche Bank AG said it expects the maker of products for eye examinations and surgeries to report sound first-quarter results and confirm medium-term targets tomorrow.

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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