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ROUNDUP / Frankfurt Stocks End: SAP price crash and lockdown fears weigh on Dax | message


FRANKFURT (dpa-AFX) – In the wake of the very high price losses of the index heavyweight SAP (SAP SE), the Dax (DAX 30) got off to a weak start to the week. The leading German index closed on Monday with a loss of 3.71 percent at 12,177.18 points, while the software company’s stocks plummeted by almost 22 percent after a disappointing outlook. The MDAX of the 60 medium-sized stocks lost 2.11 percent to 26,703.58 points.

The leading Eurozone index EuroStoxx 50 (EURO STOXX 50) fell by 2.93 percent to 3105.25 points. The CAC 40 in Paris fell by 1.9 percent, the British FTSE 100 fell by around 1.2 percent. In the USA, the Dow Jones Industrial (Dow Jones 30 Industrial) was down 2.9 percent at the close of trading in Europe.

The further strong increase in the number of new corona infections in Europe, the USA and partly again in China spoiled the mood for investors. In Europe, investors fear a second lockdown. Still unthinkable in summer, this is now becoming a probable scenario, noted Jochen Stanzl from CMC Markets.

Because of the increasing number of infections, the mood in German companies had also deteriorated in October, as the recent Ifo business climate showed. The decline was stronger than analysts feared.

In terms of business figures and a cloudy medium-term outlook, SAP posted its highest share price loss since the 1990s. At 97.50 euros, the shares of the most valuable German group ended at their lowest level since the beginning of April and ultimately lost almost 22 percent. The corona pandemic has Europe’s largest software manufacturer under control more than expected. Brsians are now counting on significantly lower market estimates for SAP. There were negative comments from analysts, as well as downgrades and price target reductions.

The pharmaceutical and agrochemical group Bayer is expanding its cell and gene therapy business with the billion-dollar takeover of the US company Asklepios BioPharmaceutical. The shares rose by up to 2 percent and closed 0.3 percent higher. Analyst Keyur Parekh from Goldman Sachs rated the acquisition as strategically positive. In the short to medium term, however, progress in the glyphosate litigation and the dynamism in the agrochemicals business are likely to dictate share price performance. Bayer shares recently fell to their lowest level in nine years.

The IT service provider Bechtle earned significantly more in the third quarter than in the previous year. Apparently, this was not enough for investors, as the shares lost almost 3 percent. The shares of industry colleague S&T came in last in the SDAX small cap index with a loss of 7.4 percent.

The euro fell and was last at $ 1.1818. The European Central Bank (ECB) had set the reference rate in the afternoon at 1.1819 dollars. The current yield on the bond market stagnated at minus 0.58 percent. The Rex bond index (REX total price index) rose by 0.01 percent to 146.20 points. The Bund future fell by 0.01 percent to 175.40 points./edh/he

— By Eduard Holetic, dpa-AFX —

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