Bayer stock loses more than 12 percent

D.he investors on the Frankfurt Stock Exchange are not giving up hope of further economic support in the United States in the fight against the consequences of the corona crisis. The Dax rose 0.4 percent in early trading on Thursday to 12,814 points. Investors are betting that Republicans and Democrats can agree on a $ 2.2 trillion stimulus package before the post-crisis recovery slows down, said Milan Cutkovic, a market analyst at brokerage firm AxiTrader. “There is not much time left and the more the negotiations drag on, the greater the risk for the economy.”

Bayer shares were traded at a discount of 12 percent. The Leverkusen pharmaceutical and
Agrochemicals group expects sales in the coming year “despite considerable headwinds from the Covid-19 pandemic”, especially in the agricultural sector, at around the level of 2020. “The weaker development in the agrochemicals business comes at a time when Bayer actually Julie Mead, an analyst at HSBC, wrote that the purchase of Monsanto had not only wiped out a lot of market value, it could also cripple the pharmaceutical division.

Telekom top, Covestro flop

Other Dax companies are also in the focus of investors today. The shares of Deutsche Telekom benefited from the fact that the American investment bank Goldman Sachs put them on its recommendation list of particularly cheap and promising stocks. Shortly after going public, they were up 2 percent to 14.56 euros. They were just below the exponential 200-day line at 14.57 euros, which is viewed as an indicator of the longer-term trend. The Goldman bankers have even increased their price target for the T-share from EUR 20.50 to EUR 22.00.

Positive business signals from STMicro have especially driven Infineon. The papers of the Munich-based group climbed by almost 5.5 percent to 25.42 euros and thus moved close to the multi-year high of the summer of 2018 at 25.76 euros. STMicro were similarly strong in Paris, closing the Corona price gap from February. Siltronic gained 4 percent in the M-Dax, but their price chart does not yet look that good. This is the second time that STMicro has raised its outlook for the full year.

The shares of specialty chemicals company Covestro, however, lost value after Credit Suisse downgraded its rating. They now only rate the papers as “Neutral” after having listed them as “Outperform” for a long time. They reduced their target price to 46 from EUR 51.50.

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