GERMANY: GERMANY'S DAX INDEX CLOSES ON HIGH AFTER A YEAR HEAVY LOSSES DUE TO GLOBAL RECESSION

Record ID: 648112

  • Title: GERMANY: GERMANY'S DAX INDEX CLOSES ON HIGH AFTER A YEAR HEAVY LOSSES DUE TO GLOBAL RECESSION
  • Date: 28th December 2001
  • Summary: (U6) FRANKFURT, GERMANY (DECEMBER 28, 2001) (REUTERS - ACCESS ALL) 1. WS: EXTERIOR FRANKFURT STOCK EXCHANGE 0.04 2. SLV: DEALERS ON FLOOR 0.20 3. CU: DEALER WITH HEADSET LOOKING ON 0.15 4. PAN ACROSS ELECTRONIC BOARD 0.28 5. SV: DEALER TALKING ON PHONE 0.36 6. F-DAX ON TV MONITOR, PAN TO DEALERS ON PHONE 0.48 7. SCU: WOMAN DEALER ON COMPUTER 0.53 8. SV: DEALER WORKING ON COMPUTER 0.58 9. SV'S/SCU: DEALERS ON FLOOR (2 SHOTS) 1.15 10. SCU: DEALERS NERVOUS HAND 1.25 11. SCU: DEALER SMOKING ON FLOOR 1.34 12. SV: DEALERS TALKING 1.38 13. SCU: SOUNDBITE (German) KARL-EGMONT NIEM, HAUCK & AUFHAEUSER PRIVATE BANK SAYING: "Overall this past year has been a catastrophe on all levels. The stock market in Germany has lost 19 percent and we have been in tow of the U.S. market. The U.S. market only lost nine percent. There are favourites among the thirty DAX companies: SAP, Adidas -- which gained 26 percent while the banks lost heavily, led by Bayerische Hypotheken Bank, Commerzbank with losses of more than 45 percent." 2.15 14. SV: DEALER 2.20 15. SCU: SOUNDBITE (German) KARL-EGMONT NIEM, HAUCK & AUFHAEUSER PRIVATE BANK SAYING:"The euro is a question of belief. We have been dealing in euros since 1999 but clients still have not got used to the euro. This is a new experience for us all. In the past we have focused on the dollar at stock exchanges because we expected difficulties with the exchange (of the euro) but I believe that people will get used to the euro and that the dollars supremacy will not be as strong anymore as it is now." 3.00 16. SV: DAX BOARD AT 1400 LOCAL (1300 GMT) 3.03 17. HIGH SHOT OF FLOOR 3.07 Initials Script is copyright Reuters Limited. All rights reserved
  • Embargoed: 12th January 2002 12:00
  • Keywords:
  • Location: FRANKFURT, GERMANY
  • Country: Germany
  • Reuters ID: LVAD9ZGI0JTHSXZPVSEUJS6MGZYG
  • Story Text: Germany's DAX has closed higher as insurers Allianz and
    Munich Re climbed, ending a year in which the global recession
    sent the benchmark index far below most players expectations.


    Chipmaker Infineon firmed after a strong performance by
    U.S. peers overnight and Epcos on Friday (December 28)
    regained some of the 4.6 percent lost over the last two weeks.

    By the end of Friday's shortened session, the DAX stood at
    5,160.10, up 0.84 percent or 43 points, building on a
    two-session upturn.

    The DAX lost 19 percent on the year, with the Nemax
    tumbling 60 percent amid a spate of insolvencies by tech firms
    following the burst of the high-tech bubble.

    "Overall this past year has been a catastrophe on all
    levels", said Karl-Egmont Niem of Hauck & Aufhaeuser private
    bank.

    "Banks lost heavily, led by Bayerische Hypotheken Bank
    (and) Commerzbank with losses of more than 45 percent", Niem
    said.

    On Friday, the Nemax 50 inched up 0.35 percent to 1,145.03
    But many market participants expect the DAX to recover
    next year to around 5,750-6,000 points as European and U.S.

    interest rate cuts start bearing fruit.

    Most market players polled last year foresaw the DAX at
    around 8,000 points by the end of 2001.

    Analysts say recovery from this year's bruising will
    probably be slow as corporate Germany takes advantage of a
    long-awaited tax reform to sell large blocks of unwanted
    shares.

    Among the companies which could see block placings next
    year is DAX heavyweight Deutsche Telekom, which has a
    substantial stock overhang following its purchase of U.S.

    mobile phone group VoiceStream earlier this year.

    Another candidate is chipmaker Infineon, whose major
    shareholder Siemens is keen to cut its stake further.

    Speaking about the euro, Niem said: "The euro is a
    question of belief. We have been dealing in euros since 1999
    but clients still have not got used to the euro."
    He added: "This is a new experience for us all. In the
    past we have focused on the dollar at stock exchanges because
    we expected difficulties with the exchange (of the euro) but I
    believe that people will get used to the euro and that the
    dollars supremacy will not be as strong anymore as it is now."


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