Frankfurt Stock Exchange Recaps Day's Gains
After a rocky start to the week, Frankfurt's stock market showed resilience, with the Dax and MDax indices registering notable improvements. On Tuesday, the Dax climbed 0.56% to close at 16,744.41 points, while the MDax mid-cap index saw a 0.94% boost, ending the day at 27,156.95 points.
Covestro and Adnoc's potential deal
Among the day's headlines was the focus on Covestro shares, which saw a 1.4% increase. Sources suggest that Abu Dhabi National Oil Company (Adnoc) is considering strengthening its informal bid for Covestro, possibly offering a job guarantee for several years and an investment of around eight billion US dollars. Adnoc's interest in the chemicals group has been a topic of speculation, with the speculated offering price hovering at 60 euros per share.
Siemens Energy's share reduction
As announced, Siemens Energy witnessed a decrease in Siemens' shareholding, where its ownership in the company dipped to 17.1%. This move led to a 2.8% surge in Siemens shares, while Siemens Energy's shares closed 0.8% higher.
Thyssenkrupp Nucera's share surge
Thyssenkrupp Nucera added momentum to its recent rally, with shares jumping 12.5% on Tuesday. The electrolysis specialist is poised to benefit from the growing global demand for climate-neutral hydrogen over the coming years. A report in the "Handelsblatt" newspaper cited that Germany and six other European countries have committed to phasing out all power plants emitting CO2 by 2035.
Ionos boosts revenue and profit margin aims
Internet service provider Ionos was another noteworthy performer, with shares growing by 6.5% as the United Internet subsidiary revealed its plans to increase revenue and profit margins in the next two years. The market warmly welcomed Ionos' targets, reflecting investor confidence in the company's future growth.
European Stock Exchange performance
The EuroStoxx index advanced 0.32% to 4535.40 points on Tuesday, led by France's stock exchange closing in the green. The London Stock Exchange showed a moderate rise, while the leading Dow Jones Industrial index and the Nasdaq 100 reached new highs on hopes for interest rate cuts in the US.
German Currency and Bond Market
The euro closed at 1.0979 US dollars after the markets closed on Tuesday, with the European Central Bank (ECB) setting the reference rate at 1.0962 (Monday: 1.0918) US dollars. On the bond market, the current yield remained constant at 2.06%, and the Rex bond index fell by 0.03% to 128.03 points. The Bundesbank future increased by 0.50%.
Enrichment Insights
In rare and newsworthy events, ADNOC International, a subsidiary of Abu Dhabi National Oil Company (ADNOC), agreed to purchase Covestro, a German chemicals company, for $16.34 billion. This deal was announced on February 14, 2025, with ADNOC offering $68 per share. This purchase would be a significant move by ADNOC to boost its presence in the chemicals industry and a testament to global trends regarding sustainable and diversified economies.
With the acquisition, ADNOC is expected to bring substantial investment into Covestro, creating opportunities for future growth and stability. While specifics on job guarantees were not mentioned in the sources, this deal aligns with ADNOC's strategic focus on technology, innovation, and sustainability.
The United Arab Emirates' acquisition of Covestro is a notable event potentially impacting the German stock market and signaling positivity towards the country's business environment. While market dynamics might evolve with more corporate divestitures in the energy and chemicals sectors, the impact of this strategic move is yet to be fully understood.
