German Stocks Surge Ahead for 2nd Straight Day

For the 2nd straight day, German stocks have gone ahead, thanks to the improved economic sentiment in the largest economy of Europe. The benchmark gauge DAX Index gained around 1.6% and is currently at 7752.45. In 2013, so far, the gauge has posted gains of 1.8%. The broader HDAX Index also gained by 1.6%.

According to Senior Strategist of Nordea Bank AB, Henrik Drusebjerg, data on economic sentiment was surprisingly high. The total trade volume was 4.3% less than average trading volume of last 30 days. 

The investor confidence in Germany increased to its highest value in last 3 years in February. The result was released by the ZEW Center for European Economic Research and according to the same; the index has jumped up to 48.2, from 31.5 of January. This marks the highest figure for the gauge since April, 2010. Incidentally, according to economists, the gauge should have been at 35. This gauge determines the expectations of analysts and investors, aiming to predict the economic developments of the next 6 months in advance.

The biggest chemical manufacturer in the world, BASF AG was the biggest gainer on Germany’s benchmark stock index. BASF posted gains of 3.3% and each of its shares is currently priced at 73.79 Euros. On a whole, the chemical companies listed under the DAX Index posted positive results today as a gauge determining the industry group recorded the best results among the 19 industry groups that fall under the Stoxx Europe 600 Index.

Marking its biggest gain since 25th January, Bayer saw its share prices increasing by 3.6%. After showing good results in the Phase 2, the company has decided to extend the global development program of the same and the Phase 3 trial of the Eylea Blindness Treatment has also started.

MTU Aero Engines Holdings AG had its best gain in last 5 months, as the same jumped up by 2.9% to 71.08 Euros. The largest aircraft engine maker of Germany stated that the operating profit of the same has increased by 14% in 2012, exceeding the initial estimates. This has definitely boosted the outlook for the company in this year.

As the 2012 profit declined by 34%, Commerzbank AG’s retail brokerage arm Comdirect Bank AG posted loss of 3.6%. Pfeiffer Vacuum Technology went down by 2.8% and is at its lowest price since 3rd December.