Weak stock markets in China and Hong Kong dampened risk appetite on the German stock market somewhat on Monday. In early trading, the Dax fell 0.24 percent to 14,505.96 points. In the past eight weeks, however, the leading German index has increased by around 20 percent. The MDax for medium-sized stocks fell by 0.29 percent to 25,896.81 points on Monday morning. The EuroStoxx 50, the leading index in the euro zone, fell by 0.20 percent to 3954.41 points.
In China, popular protests against the strict measures of the state’s zero-Covid policy are increasing. Constant corona tests and monitoring by apps, curfews and forced quarantines cause frustration. Scores of people have already been arrested during the largest wave of protests in decades. The current Covid outbreaks are fueling fears among investors of a prolonged economic dry spell in the world’s second largest economy.
The main focus on the German stock market was on shares in chemicals trader Brenntag. They lost 9.2 percent in the Dax and suffered from takeover talks between management and US rival Univar Solutions. Analysts see light and shadow. Such a deal could release synergies, but the question of the purchase price is still open.
At the top of the Dax, Fresenius shares rose by 1.8 percent after a freshly issued buy recommendation from UBS.
Analysts’ judgments also moved the chemical stocks Lanxess and Symrise. Goldman analyst Georgina Fraser expects commodity prices to fall and advises portfolio restructuring in the chemical industry. She sees strong potential for recovery at Lanxess, which is why she upgraded the paper to “buy”. However, she revised the investment rating for Symrise from “buy” to “neutral”. Compared to direct competitors, the shares of the German fragrance and flavor manufacturer have already developed 12 percent better, that is the argument for the downgrade.
