German shares close higher as MAN, Wall St gains offset Telekom losses UPDATE |
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Mon, 29 Jan 2007 18:39
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(Updates with full report)FRANKFURT (AFX) - Shares closed higher as gains by MAN and a positive start on Wall Street more than offset heavy losses in Deutsche Telekom, dealers said.At the close, the DAX 30 index was up 35.67 points or 0.53 pct at 6,726.01, having moved between a low of 6,683.38 and a high of 6,739.50.The MDAX was up 65.60 points or 0.68 pct at 9,708.37, while the TecDAX added 5.83 points or 0.73 pct to 808.80.The DAX futures index was up 9.50 points or 0.14 pct at 6,755.50, while bund futures were 0.14 points or 0.12 pct lower at 114.76.Deutsche Telekom slumped to the bottom of the DAX, down 0.57 eur or 4.02 pct at 13.60 eur, after the company issued a shock profit-warning yesterday.The telecoms giant cut its 2007 adjusted EBITDA forecast to around 19 bln eur from a previous 19.7-20.2 bln eur, owing to strong domestic competition and currency fluctuations.In a research note, Merrill Lynch said that 'compared to consensus a yearago, this represents a total reduction in underlying EBITDA of 13 pct for 2007'.Bucking the trend, truck maker MAN added 2.02 eur or 2.63 pct to 78.86, on vague market rumours Volvo is preparing a 90 eur per share takeover bid for the German firm.However, some traders dismissed the rumours, saying such a bid is unlikely to materialise.SAP was also in positive territory, up 0.34 eur at 35.96, amid rumours that US arch-rival Oracle is planning to launch an offer to acquire the German business software giant.'There's talk that Oracle will bid 38.50 eur per share for SAP,' said one London-based dealer, while cautioning he did not think there is much substance to the rumour.Infineon gained 0.10 eur to 11.19 after the company announced it swung to a first-quarter EBIT profit of 216 mln eur, from a year-earlier 122 mln eur loss thanks to a strong showing at its Qimonda memory business.The result topped the 177.25 mln eur consensus of analysts' estimatesobtained by AFX News prior to the Jan 23 release of unit Qimonda AG's first-quarter figures.Net profit in the period reached 120 mln eur, up from a year-earlier 183 mlneur loss and also well ahead of the 88.61 mln eur AFX News consensus.Analysts broadly welcomed the results, with Citigroup reconfirming its 'buy' rating for Infineon shares.On the MDAX, Hochtief jumped 2.44 eur or 4.03 pct to 62.94 on a press report in weekly WirtschaftsWoche that companies from the US, Canada and Australia are behind an attempt by Australian bank Macquarie to take over the German construction company.Hochtief denied the report, while one Frankfurt-based dealer argued such a scenario would be possible.Singulus rose 0.81 eur or 7.01 pct to 12.37 on the TecDAX, while IDS Scheer fell 0.41 eur or 2.68 pct to 14.88.newsdesk@thomson.comjfb/lamCOPYRIGHTCopyright AFX News Limited 2006. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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German shares close higher as MAN, Wall St gains offset Telekom losses 