XETRA APPLICATION / Well Maintained – Uniper’s Fall after the bailout | News

FRANKFURT (Dow Jones) – The German stock market closed with slight gains on Friday. The stock exchange continued to move between fears of recession on the one hand and easing fears of interest rate hikes on the other. In both Germany and France, purchasing managers’ indices for the manufacturing sector have now fallen below 50, which is below the threshold separating expansion from recession. The US purchasing managers’ index fell to 47 in July from 52.7. DAX gained 0.1 percent. to 13,254 points.

State takes over 30 percent. shares in Uniper

After the rescue package, Uniper fell and fell by 28.9 percent. Uniper and the Finnish parent company Fortum have agreed a rescue package with the federal government, the group said. It assumes that the federal government will take over 30 percent. Uniper as part of a capital increase. Moreover, the granted KfW loan will be increased from EUR 2 to EUR 9 billion.

“The package is more complex than expected,” said one dealer. Among other things, a burden may be a mandatory conversion instrument worth 7.7 billion euros, which is to be converted at a discount of 25 to 50 percent to the then-prevailing stock exchange price. While the capital increase was carried out at a very high discount of EUR 1.70 per share, it was only around EUR 270 million. In addition, the package still includes many contingencies such as Fortum’s parent keeping up and repayments. Fortum lost 8.4 percent.

Deutsche Telekom fell by 3 percent. The profit warning from US competitor Verizon had a negative impact here. This year, Verizon expects only an increase in sales of services in the mobile telephony business by 8.5 to 9.5 percent. Earnings per share are expected to be between $ 5.10 and $ 5.25. To date, Verizon has forecast growth of 9 to 10 percent and adjusted earnings per share of 5.40 to 5.55. A day earlier, a competitor AT&T reported strong customer growth but disappointed it with worse cash flow forecasts.

Delivery Hero, on the other hand, responded by adding 5.6 percent to the new 2022 margin target for adjusted EBITDA from minus 1.6 to minus 1.5 percent. In their estimates, Citigroup had so far assumed a margin of minus 1.7 percent. Zalando gained 4.2 percent.

They showed themselves very hard real estate stocks on Friday. The sector has benefited from a sharp drop in market interest rates in recent times as speculation on interest rate hikes has softened. Vonovia gained 6.5 percent, LEG 6.2 percent, and TAG 4.7 percent. In turn, for banks, falling market interest rates are not good news. Commerzbank lost 4.7 percent and Deutsche Bank lost 2.3 percent.

TecDAX Nagarro (+ 5.1%) slightly increased its sales forecast. An IT consultant and programmer increased it from 770 to 800 million euros. More importantly, however, the operating profit margin is kept steady at 14 percent, according to retailers.

Poor economic sequence after lowered prognosis

Ceconomy collapsed by almost 24.2 percent, the company lowered its forecast. The reason is inflation. In the previous forecast, Ceconomy expected a normalization of inflation rates, which did not happen, which led to a significant deterioration in consumer sentiment. Father Dr. Hnle fell 3.6 percent after the earnings warning. The background was the difficulties in the supply markets and soaring energy prices.

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INDEX last +/-% +/-% YTD

DAX 13 253.68 + 0.1% -16.56%

DAX future 13 233.00 + 0.3% -16.35%

XDAX 13,242.38 -0.1% -16.44%

MDAX 26 776.39 + 0.5% -23.76%

TecDAX 3,048.78 + 0.2% -22.23%

SDAX 12,570.31 + 0.2% -23.42%

last +/- tics

The future of Bund 154.48 +234

Index winners, losers and traded million euro million shares the previous day

DAX 22 18 0 3 060.3 77.3 89.0

MDAX 28 21 1,690.4 47.2 42.0

TecDAX 20 10 0 901.3 31.0 28.7

SDAX 47 22 1 125.4 12.9 6.9

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Contact to the author: manuel.priego-thimmel@wsj.com

DJG / mpt / cln

(END) Dow Jones Newswires

July 22, 2022 11:50 AM ET (3:50 PM GMT)

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