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October / 2009
German Market Report - Issue 19
published: Thursday October 08 2009
Dear readers,
This monthly report contains a brief survey of the development of the German financial market in the previous month, in September 2009, which should be valuable for readers that are not based in the German-speaking region.
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Review
Last month Germany's main index DAX® rose up +210.55 points or +3.85% from 5,464.61 points to 5,675.16 points and 2009 the DAX already went up +864,96 from 4,810,20 points at the end of 2008.
The top topic in September in Germany was the parliamentary election, in which Angela Merkel secured a new four-year mandate as German chancellor. The election results allowed Merkel to dump the “grand coalition” with the Social Democrats (SPD) and to start forming a new coaltion with the pro-business Free Democrats (FDP). The German business community is now expecting economic reforms from Merkel.
In September, General Motors agreed to sell its German unit Opel to the Canadian auto parts firm Magna after all. The US car giant announced to keep 35% of the shares in its European Opel operations and sell 55% to the Canadian-Russian consortium. While that, the German government has been accused of protectionism by neighbouring countries, where plants belonging to Opel or its sister brand Vauxhall might be closed.
Even the German economy is recovering, the German exports broke down in the first six months of 2009 by one fourth compared to the first six months of 2008.
DAX Chart
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Trading Volume
In September the trading volume on all German Stock Exchanges dropped by -51% to 121.7 billion Euro (September 2008: 250.4 billion Euro). On Xetra® the number of trades dropped by -33% to 15 million trades compared to 22 million trades in the same month of the previous year. The total trading volume on Xetra® dropped from 219.7 billion Euro (September 2008) to 100.4 billion Euro. The trading volume of foreign securities on Xetra® and the trading floor in Frankfurt was 11.5 billion Euro, which is the same volume as in September 2008.
The most liquid stock in the DAX® in September 2009 was according to the XLM SAP AG with 7.2 basis points (bp) for a volume of 100,000 Euro. The most liquid foreign stock was Royal Dutch Shell with 15.1 bp. XLM measures the liquidity adapted from the implicit transaction costs in using basis points (1bp = 0.01 percent) – the lower the XLM, the more liquid the stock. In September, Deutsche Bank AG again was the company share with the highest volume (6.1 billion Euro) on Xetra® in the DAX®.
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Most discussed international companies
The most discussed international company on www.wallstreet-online.de in the last 30 days has been on rank 2 Washington Mutual. All together 18,788 postings dealt with that company. On rank 3 was CIT Group with 4,453 postings followed by Goldsource Mines - about 2,884 postings brought that company on rank 4. wallstreet:online is the largest finance community in Germany with more than 50 million page impressions and more than 400,000 registered users.
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| Source: www.wallstreet-online.de, Companies are selected. Last update: October 8, 2009 |
Most discussed German companies
The most discussed German company on www.wallstreet-online.de in the last 30 days has been on rank 6 Infineon. All together 2,706 postings dealt with the Siemens spin-off. The next most dicussed German companies are two renewables companies: On rank 8 Solarworld with 2,359 postings and on rank 11 Conergy with 1,831 postings.
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| Source: www.wallstreet-online.de, Companies are selected. Last update: October 8, 2009 |
Forecast
The earning season of the third quarter started in the US with Alcoa yesterday. Results were much better than expected. The strength of the bull-market will be shown in the upcoming weeks, when other companies will open their books to the public. Investors should limit their risk and protect their assets with stop-loss limits. The gold price reached a new all time high today at 1,058.50 US-Dollars. In this stage its difficult to give a buy recommendation, because the market already moved up from its low in March 2009 and a lot of potential might be priced.
The media market is still down, its prices as well. Who ever wants to do marketing for his company, now you're getting big awareness for small money. Contact us - NOW!
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