Markets

MDax rises again to a record high

D.he index of medium-sized German stocks, the M-Dax, rose to a record high on Wednesday morning. Most recently, the index was up 0.2 percent at 29,715 points, around 60 points above Tuesday’s record high. The reasons given are the prospect of an aid package for the American economy. The day before, the S&P 500 index was up 10 points or 0.3 percent, three points above Friday’s record high.

In view of the minor movements, however, a decisive impetus of a possible American stimulus package is to be doubted to this extent, especially since nothing significant has changed in this regard. The White House under Donald Trump surprisingly resumed talks about it. Ultimately, however, that was essentially enough to make up for Monday’s price losses, especially since the $ 916 billion package was labeled unacceptable by the Democratic group in Congress.

In fact, the priced-in hopes of an end to the Corona crisis are likely to create a certain alleged mood with a fundamentally sideways trend. The M-Dax is currently benefiting from the fact that current value stocks and cyclical stocks are more in demand because the markets continue to rely on their recovery. The fund companies JP Morgan AM and Blackrock expressed caution in their annual outlook for 2021 with a view to this rotation and consider this movement to be rather short-term.

Thyssen-Krupp are particularly in demand in the M-Dax, their share price rises by 3.7 percent. The American investment bank Bank of America put the stock on its “best
Ideas List “of small and medium-sized European stocks and raised the target price from 6.50 to 8 euros. In the short term, hydrogen activities and the future of the steel division are clear price drivers. Compugroup increase by 1.8 percent and thus recover slightly from the sharp losses the previous day in response to the forecast of a lower margin.

The standard value index Dax, on the other hand, has increased significantly more. He wins 0.9 percent on 13,400 points. Covestro and BASF in particular are in demand with surcharges of more than 4 and more than 3 percent. The plastics group Covestro has raised its annual outlook again. These are now well above the average analyst estimates. Despite all optimism, experts warn against too much euphoria.

BASF benefit from a price target raised by Commerzbank from EUR 57 to EUR 71. The analysts believe that a recovery in the auto industry and the
Chinese economy will bring a trend reversal for the chemical company in 2021. Since the share price has still been in the red since the beginning of the year, this opens up further potential with a view to the expected growth in operating profit.

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