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published: 02/05/2010
December / 2008
German Market Report - Issue 9
published: Wednesday December 03 2008
Dear readers,
This monthly report contains a brief survey of the development of the German financial market in the previous month, in November 2008, which should be valuable for readers that are not based in the German-speaking region.
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Review
Last month Germany's corporate mood showed producers and retailers are faced with a slowing economy and the global financial crisis. The monthy business climate index of the economic research institute Ifo fell from 90.2 points in October to 85.8 points in November, the lowest result since 1993. The drop in November was the sixth drop in a row and polls the mood of around 7,000 companies in Germany. Their current business situation is difficult and their outlook for 2009 is also sceptical. At the same time the unemployment numbers in Germany dropped by 8,000. The job market in the world'S third largest economy is still stable and companies are hiring employees.
DAX Chart:
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Trading Volume
In November the trading volume on all German Stock Exchanges dropped by 49 percent to 137.4 billion Euro (November 2007: 267.3 billion Euro). On Xetra® the number of trades dropped by 5 percent to 18.3 million trades compared to 19.3 million trades in the same month of the previous year. The total trading volume on Xetra® dropped from 230.4 billion to 114.5 billion, as well as the trading volume of foreign securities on Xetra® and the trading floor in Frankfurt dropped from 10.7 billion (November 2007) to 8.8 billion Euro.
The most liquid stock in the DAX® in November 2008 was according to the XLM Telekom AG with 14 basis points (bp) for a volume of 100,000 Euro. The most liquid foreign stock was Nokia Corp. with 28 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 November Volkswagen AG was again the company share with the highest volume (7.8 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 Cardero. All together 6,273 postings dealt with that company. On rank 3 is Washington Mutual (WM) and on rank 4 Forsys Metals. WM is directly related to the US credit crunch. Many German shareholders might have lost a huge amount with this companies, which used to be a US blue chip. 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: Dec 1, 2008 |
Most discussed German companies
The most discussed German company on www.wallstreet-online.de in the last 30 days has been Solarword. This company is a German renewable firm and made a take over bid for Opel, a German daughter of General Motors. All together 4,339 postings dealt with that company. On rank 10 is the renewable company Q-Cells and on rank 13 is the pay tv carrier Premiere.
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| Source: www.wallstreet-online.de, Companies are selected. Last update: Dec 1, 2008 |
Forecast
The stock markets will stay volatile and provide risky chances for short term investors. Long term investors will get more and more bargains served with marketcaps below cash equivalents. But in this stage nobody really knows, where the buttom is. For that reason risk management is very important for all market participants.
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