Dax is staying close to 16,000 points – noticeable purchases in Steinhoff shares

Düsseldorf On the penultimate trading day of the year, the Dax again moved away from the 16,000 point mark. On Wednesday, the German benchmark index was 0.2 percent in the red at 15,935 points in the first hour of trading.

“The fears after the appearance of the Omikron variant at the end of November have not yet come true,” says analyst Jochen Stanzl from the online broker CMC Markets. The stock market would therefore ignore both the rapidly increasing number of infections in some countries and the danger of the fifth wave, which may be hidden by the holidays. “Investors are already mentally looking through the pandemic and are hoping for the economic strength to continue in the coming year.”

For the rest of the day, however, the weak start is a bad sign. Because on Monday and Tuesday the Dax had made the majority of its profits in the morning: on Monday it rose almost 100 points after a weak start, on Tuesday it went up 130 points in the first hours of trading.

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The jump over the mark of 16,000 points could be postponed for the time being – possibly in January, when traditionally new money flows to the stock exchanges. In the past ten years, however, the Dax has not always benefited from this effect.

Data from the financial service Refinitiv show that the Dax has achieved six positive performance and four negative performance since 2012 in January. When it went up, it was relatively clear, on average by 4.9 percent. The average losses are slightly lower at 3.9 percent.

However, the January performance is only of limited informative value for the stock market year. Both in the current and in the previous year, the Dax fell in the month, but still closed the stock market year with a profit.

Look at individual values

Deutsche Bank: The financial supervisory authority BaFin has sentenced Deutsche Bank to a fine of EUR 8.66 million. Germany’s largest financial institution has temporarily not effectively implemented the preventive measures specified in a European regulation, which are intended to prevent manipulation of the Euribor reference interest rate, said the Bonn authority. Deutsche Bank shares are up 0.2 percent on Wednesday morning.

Infineon: In the wake of weaker US technology stocks, semiconductor stocks were also among the biggest losers in this country. Infineon titles are among the losers in the Dax with a minus of 0.8 percent.

Eventim: The head of the ticket marketer and concert promoter is optimistic for the second quarter. “We believe that we can carry out our many festivals and also large open-air tours like Ed Sheeran’s,” said Klaus-Peter Schulenberg of the “FAZ”. Eventim papers are up 0.4 percent.

Steinhoff shares cause a sensation

The share of the South African-German trading group Steinhoff is currently causing a sensation. On Tuesday, the papers rose 16 percent after Steinhoff announced that a settlement had been reached with several creditors. The company had worked towards this for years.

It is noticeable that the share rose significantly even before the settlement was announced. “Der Aktionär” reports on speculation that has been circulating for a few weeks that investors may have bought Steinhoff shares that had detailed information on what happened with the creditors.

Since the beginning of the month, the share is more than 130 percent in the black. On Wednesday there was profit-taking, the titles fell by more than three percent.

Steinhoff had to admit a billion-dollar balance sheet hole at the end of 2017. The Steinhoff share, which is also listed in Frankfurt, then collapsed to a fraction of its value and is now only a penny stock, so the price is in the cent range. Since then, Steinhoff has tried to put the business back on a solid footing with a comprehensive restructuring of the balance sheet.

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