On Thursday, the Dax extended the losses it suffered in the middle of the week. Ongoing inflation and interest rate concerns continued to weigh on sentiment. The leading German index fell by 0.36 percent to 15,249.46 points. The MDax for medium-sized stocks fell slightly to 28,562.84 points. The leading eurozone index, the EuroStoxx 50, fell by 0.29 percent.
In trading, the focus will be on February inflation data from the Eurozone.
At the end of the Dax, Covestro shares fell by more than four percent. In the difficult economic environment, the plastics group does not dare to make any specific forecasts for 2023. The operating result is likely to fall significantly in the current year. The same applies to the free inflow of funds from operations.
The Darmstadt-based pharmaceutical and specialty chemicals group Merck KGaA expects further cost pressure this year. According to the analysis house Jefferies, the operating result in the fourth quarter was below expectations. The papers gave way.
The Evonik Group, which is also active in the chemical industry, expects profits to fall in the current year in a market environment that will remain difficult. However, the share certificates have recently increased somewhat. A disappointing earnings development is offset by a better cash inflow, wrote analyst Chetan Udeshi from the US bank JPMorgan.
Rising costs and disrupted supply chains created a lot of headwind for forklift truck manufacturer Kion last year. There were also internal problems with project management. The situation should improve this year, but management does not expect to be able to repeat the record values of 2021. Kion's shares quickly made up for initial losses and recently gained almost two percent.
Shares in real estate groups bucked the negative trend and rose. Here came positive news for the industry from Berlin, where almost three weeks after the repeat election everything points to upcoming coalition negotiations between the CDU and SPD. The two parties probably did not intend a blanket expropriation of real estate, but the socialization of residential real estate in individual cases through purchase, as one broker said.
The implementation of the successful referendum on the expropriation of large housing groups was a contentious issue between the parties of the previous red-green-red government coalition in Berlin. The discussion has also put pressure on stocks in the industry. LEG Immobilien's shares at the top of the MDax have now gained a good four percent. TAG Immobilien's shares rose by almost one percent.