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DAX (Frankfurt) German Stock market overview Week: 16, 16/04/2012 20/04/2012 The German XETRA DAX has

as finally ended its month of continuous drop with a +2.52% increase this week and closed with a value of 6,750.12 points. The upward pressure possibly put by the Spains debt auctions. The top 3 gainers of the week were: BASF SE (+7.42%), Merck KGaA (+7.13%) and Bayer AG+6.40%. Top 3 fallers: Volkswagen AG (-2.64%), K+S AG-(1.86%) and METRO AG (-1.36%). The overall turnover of the week was 17.87 billion Euros.

Figure 1. DAX index change during week 16. Source: markets.ft.com

The biggest gainer of the week was BASF SE (BASd), a chemical company, with an increase of +7.42% in share prices. The upward pressure was put by the growing expectations of the first quarter results, the interim report on first quarter will be published next week on April 27th. In addition, HSBC, a recognized financial services company, has upgraded the stock from neutral to overweight. Merck KGaA (MRKd) was this weeks second biggest gainer with an increase in share price from 83.69 EUR to 86.45 EUR or an increase by 7.13%. Nevertheless, CEO of Merck KGaA Karl-Ludwig Kley said Friday that the company will not engage with any major takeovers until the end of next year, and intends to focus on cost reduction and job cuts. The third biggest gainer this week is Bayer AG (BAYNd) with an increase of 6.40%. It has increased in share price from 52.40 EUR to 53.73 EUR. At the start of this week Bayer AGs molecular imaging development portfolio was acquired by Piramal Healthcare. The acquisition is being made through its newly created subsidiary Piramal Imaging SA. Volkswagen AG (VOW3d), a German car manufacturer, is the worst performer of the week. During the week, the price per share of the company decreased by 2.57%. On the first two days of the week, VOW3d was performing quite well, following trends of the market. Yet on Wednesday and Thursday prices decreased, as companys division Audi agreed to buy Italian motorcycle maker Ducati, which has quite a lot of debt on its balance sheet. Moreover, Volkswagen announced that it has an intention to build a new factory in western China. On Friday, VOW3d dropped by another 1.26%. Such a decline in share prices might have been caused by the fact that the company is

expected to report first quarter operating profit lower by 9% than it was forecasted. Despite the fact that sales in China increased a little bit, car manufacturers are still suffering from the slowdown in demand for cars. However, several factors like possible acquisition with Ducati and intentions to build new factories might move VOW3ds stock prices in the nearest future. During this week K+S AG, which specializes in producing fertilizers, had its share price decreased by -1.86% and closed at 37.14 per share. On 1st April, 2012, Mr. Matthias Mohr was appointed Managing Director of ESCO a European salt company, for Production, Finance and Administration. ESCO is a part of the K+S AG group and starting from 1st there has been a downgrade in its share price which as we can see hasn`t stopped.

METRO AG, which is an international retailing company, this week dropped by -1.36%. During this week German trade magazine Lebensmittelzeitung reported a drop in sales at MediaMarkt-Saturn stores (a part of Metro group) in Germany which was at least 10 percent for January.

After a few weeks on negative trends, German Stock Exchange showed some positive movement, DAX index was going up this week, proving the better outlook of the euro zones economy. The strong demand for Spanish short-term government debt dispelled some of the fears of another imminent euro zone debt crisis and according to Joerg Asmussen, ECB policymaker, the worst of the crisis is over. However, investors are still cautious, waiting for the news from the IMF and World Bank annual spring meeting, which takes place this weekend.