The Dax continued its record pursuit on Thursday afternoon and broke the 27,000-point mark for the first time. At 12:30 p.m., the index was calculated at around 26,845 points. This represents a plus of 0.7 percent compared to the previous trading day. Zalando, Hochtief, and Siemens ranked at the top of the price list, while Brenntag, Infineon, and Henkel were at the end.
Andreas Lipkow, chief market analyst at CMC Markets, said: The Dax surpassed the 27,000-point mark for the first time today. However, it initially only closed slightly above that level. Investors apparently used the historic jump to slow down. Strong price increases in the index heavyweight Siemens had previously moved the German leading index above the psychologically important threshold. “But as soon as the big target was reached, the willingness to buy noticeably slowed down.”
Lipkow stated that the recent development shows that the air for the German stock market is becoming thinner. The year-end rally is fully underway and has already exploited a significant part of its short-term price potential. “In recent weeks, investors anticipated numerous positive developments and were willing to accept increasingly higher valuations for Dax companies. Although the largely convincing reporting season supported this optimism, it is now nearing its end.” Consequently, one of the most important drivers of the past weeks is gradually disappearing.
The analyst added that for a sustainable continuation of the record pursuit, the Dax needs new impulses. Significantly lower energy prices or concrete progress in peace efforts between Russia and Ukraine could trigger additional buying interest. “However, without such positive surprises, it will increasingly become more difficult to expand the achieved price level.”
