Frankfurt Celebration mood at Porsche, anxious expectation of inflation figures from September – in this psychological Spagat, the Dax opened on Thursday with a minus of 0.8 percent at 12,085 points. After the losses of the past few days, investors remain skeptical.
The IPO of the sports car manufacturer Porsche is the largest initial public offering (IPO) in Germany since Telekom in 1996. Accordingly, the markets had been watching the books fill for weeks.
On Wednesday, the underwriting consortium announced that the price would be EUR 82.50 per share – at the upper end of the previously targeted range. Overall, the VW subsidiary with a good 75 billion Eurated ro. After the start of trading at 9 a.m., the price initially rose sharply to EUR 84.
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If the prices stay at this level, the stock market newcomer could be promoted to the leading index Dax in December when the German stock exchange regularly reviews the composition of its indices. The online retailer Zalando, whose share could then fall out down 3.5 percent in early trading.
>> Read also: You should consider this before buying Porsche shares
This positive mood cannot hide the fact that the current market situation is uncomfortable. Furthermore, the uncertainties caused by Russia’s war of aggression in Ukraine, high energy prices, interest rate increases and fears of recession are weighing on companies in Germany and around the world.
Countries call for energy price caps
An escalation of the conflict with Russia is possible at any time, as the incidents at the Nord Stream pipelines show. The 16 Prime Ministers are therefore calling on the federal government to quickly introduce a comprehensive price cap for electricity, gas and heat for households and companies.
In the late morning, the leading German economic research institutes presented their joint forecast for the economy. As previously announced, they only expect GDP growth of 1.4 percent for 2022 as a whole.
For the year 2023, economists and statisticians are assuming a recession. GDP is expected to shrink by 0.4 percent.
Some of the recession expectations are probably already priced in on the stock exchanges, as this is not the first forecast to point to a contracting economy. However, the new data will not fuel investors’ willingness to invest.
>> Read also: “We can see fear and panic” – investor sentiment initially indicates a bottom on the Dax
In the early afternoon, the Federal Statistical Office will also publish the inflation figures for September. Initial data from the federal states indicate a significant jump. In North Rhine-Westphalia, for example, annual inflation rose to 10.1 (August: 8.1) percent and thus to the highest level since the early 1950s, as reported by the State Statistical Office in Düsseldorf on Thursday.
Experts expect a rate of more than nine percent, after 7.9 percent in August. This could lead to another setback in the Dax and test the 12,000 mark again.
Dax could slip to 11,000 points
The leading index has lost around 23 percent since the beginning of the year and is trading at the level of November 2020. The situation is similar with the US leading index S&P 500. Investment banks therefore expect further losses. The Dax could slip down to 11,000 points this year before the direction finally changes.
The euro has recovered somewhat since hitting a 20-year low yesterday. As of Thursday morning, it was trading at $9.671.
Individual values in focus
Volkswagen: The parent company of Porsche ni9.4 billion euros with the IPO. Accordingly, VW is also popular with investors today. The stock opened up 0.9 percent. The group intends to use the income from the IPO to expand electromobility.
Porsche SE: The holding company of the VW-owning families gets 25 percent of the shares in Porsche AG and one ordinary share. This means that it has a blocking minority when it comes to decisions. Porsche SE already holds the majority of voting rights in Volkswagen AG. Their stocks opened up 1.7 percent.
Hugo Boss: A negative comment from the analysts depresses the moderatorma in the minus. The shares fell on Thursday morning by 3.5 percent to around 46.40 euros. The experts at Baader Helvea Bank have downgraded the stock to “Reduce” from “Add” and lowered the price target to EUR 44 from EUR 58.
Rational: The supply situation for electronic components is easing at the canteen kitchen outfitter. Because more can be produced as a result, the manufacturer of cooking appliances raised its sales and profit expectations for the current year on Thursday. Ration calculates after a record half-yearal for the third quarter with 270 million euros again with a high in sales. The stock was up more than 12 percent in early trading.
With material from Bloomberg, dpa and Reuters.
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