Stock exchange in Frankfurt: Dax little moved

Investors in the German stock market remained cautious on Tuesday.

Stock exchange in Frankfurt: Dax little moved

Investors in the German stock market remained cautious on Tuesday. In the afternoon, the Dax was down 0.1 percent at 15,955.04 points, after slipping below the much-noticed 16,000 point mark the day before and falling by a good 0.5 percent. The MDax fell by 0.7 percent on Tuesday to 26,928.05 points. The EuroStoxx 50 fell by 0.3 percent.

"It is still unclear which direction the Dax will take. And so long many will remain under cover. New entries and profit-taking are roughly balanced. The fear of being positioned on the wrong side in the next big movement has recently increased significantly ", explained market analyst Thomas Altmann from QC Partners.

Konstantin Oldenburger from CMC Markets also took this notch: "The Dax is stuck in a consolidation and there is a lack of any impulses, which, however, applies equally to both directions." The expert believes that the almost lethargic mood on the stock exchange should continue at least until the central bank meetings in the USA and the euro zone next week. "With every passing day more and more lacking in dynamism, a gloomy stock market summer is looming, in which only a few buyers might be willing to make new commitments or increase existing ones," said Oldenburger.

Symrise shares rose by 1.6 percent. Analyst Celine Pannuti from JPMorgan highlighted the papers in a recent industry study as the preferred "top pick". She pointed to superior volume growth and the potential for surprise earnings expectations for 2024 thanks to easing cost pressures. As expected, the fragrance and flavor manufacturer also submitted a mandatory offer to acquire Swedish pet food specialist Swedencare. However, the offer of 37.50 Swedish crowns per share is well below Monday's closing price.

With a decline of 0.8 percent, the shares of the semiconductor group Infineon were among the weaker values ​​in the Dax. The world's largest chip contract manufacturer TSMC is only aiming for the minimum of its investments announced for 2023 due to weak demand for its products. That probably corrects the expectations in the industry to the bottom of the facts, commented analyst Sandeep Deshpande from JPMorgan.

The shares of the real estate financier Deutsche Pfandbriefbank reacted with a minus of 6.0 percent to a sell recommendation from Citigroup and fell to their lowest level since October 2022. Analyst Borja Ramirez Segura justified the downgrade by pointing out that the commercial real estate markets are in a downturn with falling prices and falling investor demand.

Shop Apotheke and Evotec stocks rose 2.8 and 1.8 percent, respectively. Both will return to the MDax on June 19th. The other MDax climbers are Krones and Software AG.

Meanwhile, shares in United Internet, Siltronic and, to a lesser extent, Adtran fell. They have to vacate their place in the MDax and will soon find themselves in the SDax small-cap index.

The euro fell to $1.0670. The ECB had last set the reference rate at 1.0690 (Friday: 1.0763) dollars the previous day, the dollar thus cost 0.9355 (0.9291) euros.

On the bond market, the current yield fell from 2.41 percent on the previous day to 2.37 percent. The Rex pension index rose by 0.14 percent to 125.87 points. The Bund future gained 0.22 percent to 135.06 points.