Defense sector values drop, K+S experiencing losses
The German stock market showed signs of hesitation on Wednesday, with the DAX failing to surpass the 24,500 point mark and closing at 24,277 points, marking a 0.60 percent decline. This comes as the market awaits the crucial speech by US Federal Reserve Chair Jerome Powell.
In the sluggish market, defensive stocks were leading the charge. Shares of consumer goods company Henkel gained around 1.6 percent, while Deutsche Telekom's stock also benefited, gaining around one percent. Rheinmetall (WKN: 703000) experienced a 0.4 percent decline, but Hensoldt (no WKN provided) gained around 1.6 percent in shares.
However, not all companies fared well. K+S (WKN: KSAG88) saw a significant 4.7 percent decrease in shares due to a downgrade by Berenberg Bank from "Buy" to "Sell". This downgrade is putting significant pressure on K+S. The Berenberg Bank analyst, Sebastian Bray, changed the K+S stock rating from "Buy" to "Sell," lowering the price target from 17 to 11 euros as of August 2025. UBS also reiterated a "Sell" rating around the same time, reinforcing the bearish consensus.
Analysts are concerned about the recent price development in the fertilizer market for K+S (WKN: KSAG88). The MDAX also experienced a 0.35 percent loss, closing at 30,877 points. Renk (no WKN provided) saw a 1.6 percent decrease in shares, while K+S (WKN: KSAG88) contains material from dpa-AFX.
It's important to note that the management and majority shareholder of the publisher Börsenmedien AG, Mr. Bernd Föst, has entered into direct and indirect positions in the following financial instruments mentioned in the publication: Deutsche Telekom NA.
This news serves as a reminder of the dynamic nature of the stock market and the importance of staying informed about market trends and company-specific developments.
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