After last week’s losses, the most important indices on the German stock market were able to stabilize in early trading on Monday. After an initially weak start, the Dax contained its losses and fluctuated around the end of Friday. Most recently, the leading German index was down 0.02 percent at 12,281.91 points.
According to experts, bargain hunters in particular were out and about at the start of the week. Any political consequences of the possible shift to the right in Italy after the parliamentary elections initially played no role in the morning.
For the MDax of medium-sized stocks, it went up significantly in the morning with 0.42 percent to 22,635.75 points. The stock market barometer for medium-sized stocks had marked a low for more than two years on Friday.
A wave of fears of a deep economic downturn swept through stock markets around the world last week. As a result, the Dax slipped to a low since November 2020 at around 12,181 points on Friday. These worries were recently fueled by the central banks’ vehement intervention to combat high inflation. There is a danger that the monetary watchdogs will overshoot the mark and damage the economy. Despite the current gains, stockbrokers currently see further downside potential.
On Monday, the bargain hunters mainly grabbed those stocks where the most recent wave of sales had caused prices to fall significantly. These included above all stocks from the pharmaceutical sector in the Dax. The price gains at Fresenius, the subsidiary FMC, and Siemens Healthineers were each well over one percent, and shares in the laboratory service provider Sartorius rose by more than two and a half percent.
Technology stocks were also in particularly high demand across Europe after the recent downturn. SAP in the Dax, for example, rose by almost two percent, for the chip industry supplier Aixtron in the MDax it went up similarly. Because the industry is heavily financed by credit and is therefore affected by rising interest rates, it has recently come under fire. JPMorgan analyst Mislav Matejka now sees a tactical entry point for investors, with the chance for a recovery in growth stocks “similar to what we saw over the summer,” the analyst wrote.
Investors also grabbed those companies that had attracted negative attention in the recent past with profit warnings or cashed annual targets. Shares in the battery manufacturer Varta, for example, rose by around 1.7 percent. After the profit warning almost two weeks ago, forklift manufacturer Kion was up almost two and a half percent.
On the other hand, the papers of the fertilizer company K S stood out as the tail light in the mean value index with a minus of almost seven percent. They fell to a low since February. The market observers referred to the increased producer prices, which slowed down the fertilizer industry.
