Dusseldorf Dax companies such as SAP, Hellofresh, BASF and Adidas are buying back their own shares on a large scale. The largest listed companies in Germany want to spend almost 18 billion euros on share buybacks – a record figure.
From an investor’s point of view, share buybacks are initially not a bad thing: When companies take shares off the market in this way, the number of tradable securities is reduced – which in turn drives prices up.
Stock buybacks are not uncommon and have occurred on a regular basis, but the last time this happened on such a large scale was in the early 2000s before the dot-com bubble burst or just before the 2008 financial crisis.
Does history repeat itself? Is the market now threatened with a crash or are such worries unfounded? And how can investors react to the current situation? Handelsblatt stock market expert Ulf Sommer explains this in the new episode of Handelsblatt Today Extended.
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