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Deutsche Börse – The Top and Flop Shares in Dax 2017 News

Friday, September 1st, 2017 | Economy

Since the significant appreciation of the Community currency from mid-May, the German leading index Dax has lost some 6 percent of its value and currently stands at 12070 points. This was after the German stock exchange in June temporarily climbed to a new record high. Just over the last three months, the euro has appreciated against the dollar by 6 percent, since the beginning of the year it is even 13 percent.
In a European comparison the Dax is thus mediocre. As the table below shows, it has lagged behind other major euro area exchanges since the beginning of the year, leaving only the French CAC 40 behind. Also striking: since the start of the euro appreciation about three months ago, only the Italian stock market could hold up. Since then, all other stock markets have fallen significantly.
Performance of European stock exchanges
stock market
Perf. Since January 1, 17, in%
Perf. 3 months, in%
FTSE MIB (Italy)
+11.8
+3.3
IBEX 35 (Spain)
+9.6
-5.8
AEX (Greece)
+6.6
-2.4
Dax (Germany)
+5.2
-5.1
CAC 40 (France)
+4.5
-3.4
EuroStoxx 50
+4
-3.9
Source: cash.ch (as of 31.08.17)
An important reason for the fact that the strengthened euro is particularly striking in German equities is the great importance of the export sector. As a result, goods "Made in Germany" are becoming increasingly expensive on the world market, which dampens demand.
Companies such as HeidelbergCement or the healthcare company Fresenius generate up to two thirds of their sales abroad, a large portion of which is in the dollar area. These shares are therefore lagging behind the overall market.
But there are also German exporters, who are popular among investors despite strong Euros. This includes Adidas. With an increase of 26 percent since the beginning of the year, the sports article manufacturer is among the best Dax titles. Adidas was less likely to profit from the medal at the London Athletics Championships than from strong company numbers. Lastly, the annual forecast was raised.
However, observers warn that the euro appreciation has not yet been fully appreciated by many German companies and that future disappointments are therefore likely. Even Adidas CEO Kasper Rorsted recently warned in an interview with the "Frankfurter Allgemeine Zeitung" about the weak dollar: "In the first half of the year, we had a backwind, in the next six months we will have a headwind."
Who catches Air Berlin?
In the last few months, only the energy stocks of E.ON and RWE as well as the airline Lufthansa were better than Adidas. In the energy sector, however, it must be borne in mind that many stocks have come under pressure from the energy producers and are gradually stabilizing at a low level. Over the last ten years, RWE has corrected from 102 to 21 euros. Even if the losses in the billions are likely to be history, an entry at this level is only something for risky investors.
Lufthansa, on the other hand, has recently profited strongly from the insolvency of Air Berlin – at least if one can believe the reaction of the financial markets. The parent company of Swiss has increased by 6 per cent on the 15th of August after its application for insolvency. Strong passenger numbers and low oil prices provide additional boost. But the competition of low-cost airlines such as Easyjet or Ryanair or the subsidized golf airlines will not disappear so quickly, a takeover or part-takeover as well as integration of Air Berlin is not in dry cloths. In addition, the stock is close to the highest level in ten years. This raises the question of whether there is still a lot of air up there.
Diesel scandal continues to be the focus
At the lower end of the Dax rankings, a few surprisingly few car manufacturers are lined up: Daimler and BMW are hardly affected by this year. Volkswagen is also down 6 percent in the negative. A good entry point?
The private bank Metzler is skeptical, as is to be read on the side of ARD stock exchange: 2018 and possibly also 2019 would be very difficult, whereby apart from the diesel scandal also saturated or even declining markets as in North America braked. To the unfavorable mixture would contribute the high start-up costs for new electric models at the moment the whole Autowelt.
Top and flop shares in Dax 2017
The best
The worst
share
Perf. Since January 1, 17, in%
share
Perf. Since January 1, 17, in%
RWE
+78
ProSiebenSat.1
-25
Lufthansa
+70
Daimler
-13
Commerzbank
+44
BMW
-12
E.ON
+43
About
-12
adidas
+26
HeidelbergCement
-9
Source: cash.ch (as of 31.08.17)

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