German shares continue rally with gains of 1.08 pct at start of trading on Friday
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E-mail Xinhua, June 5, 2020
BERLIN, June 5 (Xinhua) -- German stocks continued their rally and were off to a good start on Friday, with the benchmark DAX index rising 134.6 points, or 1.08 percent, opening at 12,565.16 points.
The biggest winner among Germany's largest 30 companies at the start of trading was aircraft engine manufacturer MTU Aero Engines, increasing by 2.99 percent, followed by Deutsche Bank with 2.64 percent and Volkswagen with 1.95 percent.
Shares of Fresenius Medical Care (FMC) fell slightly by 0.39 percent. The German dialysis specialist was the biggest loser at the start of trading on Friday.
On Thursday after trading, Deutsche Boerse announced that Germany's largest airline Lufthansa would lose its place in the DAX index of the country's 30 largest listed companies by late June. Shares of Lufthansa had lost around half their value since the beginning of the year.
Housing company Deutsche Wohnen, currently listed in the smaller MDAX of Germany's 60 largest listed companies after DAX companies, would take Lufthansa's place, according to Germany's stock operator. Shares of Deutsche Wohnen had increased by more than 50 percent since mid-March.
"We are very pleased to have been promoted to the leading index of the German stock market. This is proof of our successful development in recent years," commented Michael Zahn, chief executive officer (CEO) of Deutsche Wohnen on Friday.
New orders in Germany's important manufacturing sector fell strongly in April by 25.8 on the previous month and even by more than a third compared to April last year, according to provisional figures by the Federal Statistical Office (Destatis), announced on Friday.
On Friday, Germany's central bank, Deutsche Bundesbank, forecasted that the German economy would only start recovering after a "deep recession in the second quarter of this year." Economic output would shrink by 7 percent in 2020, but in the next two years, real gross domestic product (GDP) would increase by 3 to 4 percent annually.
The yield on German ten-year bonds went up 0.023 percentage points to minus 0.301 percent, and the euro was trading almost unchanged at 1.1337 U.S. dollars, increasing slightly by 0.01 percent on Friday morning. Enditem
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