GERMANY: GERMAN SHARES SOAR AS NEWS REPORT SHOW THAT THE US MILITARY HAS SURROUNDED BAGHDAD

Record ID: 649118

  • Title: GERMANY: GERMAN SHARES SOAR AS NEWS REPORT SHOW THAT THE US MILITARY HAS SURROUNDED BAGHDAD
  • Date: 7th April 2003
  • Summary: (U4) FRANKFURT, GERMANY (APRIL 7, 2003) (REUTERS) 1. SLV EXTERIOR FRANKFURT STOCK EXCHANGE 0.05 2. SLV OF FLOOR TRADING 0.09 3. SV/MCU TRADERS (6 SHOTS) 0.40 4. CU BOARD 0.45 5. MCU TRADER WATCHING BOARD 0.50 6. CU OF BOARD 0.55 7. SV TRADER 0.59 8. PAN OF PRICES ON BOARD 1.09 9. MCU (German) JOACHIM LLAMBI, DIRECTOR OF CONCORD SKONTROFUEHRUNG, SAYING "You see today on the stock market that the prices have risen very strongly, this is probably ninety five percent because the Americans, the allied troops are massively going into Baghdad, and have also been seen in the centre of the city, that is seen as very positive on the German stock market as well as the American trading and therefore the prices are shooting up." 1.38 10. SV TRADER LOOKING AT FLAT SCREEN 1.42 11. MCU (German) LLAMBI, SAYING "We still have prices that are far below three thousand points on the DAX. As a small investor I would continue to hold off in the coming days, even though it is going up a bit. The situation in Iraq is still unclear, and even when it is clearer, the prices will rise again in the short term but probably not a lot because there are other issues which Mr. Schroeder has to deal with. For example, what is the economic outlook in Germany, it's not at all rosy right now, that will come into the foreground, and then the small shareholders have to decide if they will buy or not." 2.19 12. LV/SV OF STOCK EXCHANGE; BOARD (2 SHOTS) 2.30 Initials Script is copyright Reuters Limited. All rights reserved
  • Embargoed: 22nd April 2003 13:00
  • Keywords:
  • Location: FRANKFURT, GERMANY
  • Country: Germany
  • Reuters ID: LVA7J1LL2I55BTMEONM9FIAC2VMW
  • Story Text: German shares have soared in heavy trading as news that
    U.S. troops were pushing into central Baghdad stoked
    anticipation among investors that the 19-day war in Iraq was
    entering its final phase.



    Stock markets across Europe experienced an upsurge on
    Monday (April 7, 2003) as news reports show that the US military
    has surrounded Baghdad. The DAX was up 5.7 percent at 2,805
    points, while the CAC-40 in Paris rose five percent to 2,981
    points. The Swiss index gained 3.8 percent to 4,555 points.

    By 0928 GMT the FTSE Eurotop 300 index was up 4.3 percent
    at 829 points, leaving the pan-European benchmark up 21.5
    percent above its mid-March six-year closing low. Every
    Eurotop 300 constituent stock bar three was up.

    U.S. stock index futures indicated that Wall Street was
    headed for an opening rally, with the Dow Jones industrial
    average set to open up about 230 points.

    "You see today on the stock market that the prices have
    risen very strongly, this is probably 95 percent because the
    Americans, the allied troops are massively going into Baghdad,
    and have also been seen in the centre of the city, that is
    seen as very positive on the German stock market as well as
    the American trading and therefore the prices are shooting
    up," said Joachim Llambi, the director of brokerage firm
    Concord Skontrofuerhung.

    U.S. forces burst into the heart of Baghdad and entered
    two palace complexes of President Saddam Hussein, but they
    said the operation was an armoured raid not intended to hold
    territory.

    Iraq said the invaders were "committing suicide" on the
    gates of the capital. U.S. forces captured Baghdad airport on
    Friday (April 4), while in the south, British forces were in
    control of
    most of Iraq's second city, Basra.

    Still, traders warned small investors in Germany not to be
    overly enthusiastic in the short term.

    "The situation in Iraq is still unclear, and even when it
    is clearer, the prices will rise again in the short term, but
    probably not a lot because there are other issues which Mr.

    Schroeder has to deal with. For example, what is the economic
    outlook in Germany, it's not at all rosy right now, that will
    come into the foreground, and then the small shareholders have
    to decide if they will buy or not," Llambi said.


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