Nel ASA back in the valley of tears, BYD gives confidence, Deutsche Telekom gives dividends and Bayer remains weak.

Caution seems to be the order of the day

Stock markets are currently in shambles. Interest rate concerns were widespread in the US this week, but strong economic data also offers hope. In Europe, the ECB at least gave further indications of a possible interest rate cut in June, but nothing was set in stone. The bottom line is that prices showed little movement on Thursday.

It was quiet Nel ASA (NO0010081235) Unfortunately, this is at a low level. A few days ago, the title was able to pass the mark of EUR 0.50 and jump a lot, for which there was no apparent reason. Some observers attribute the whole thing to speculation about the withdrawal of short sellers. But no matter how you look at it, there was no information on the primary side.

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Finally, one negative analyst comment was enough to cause the recovery to collapse. Yesterday the discount was reduced by less than 0.9 percent and it was traded at 0.46 euros. This means that Nel is back in familiar price areas and there are still no signs of a sustained recovery. Lower interest rates may help the company, but now the focus is on quarterly figures, which are due next week.

BYD: The next generation

WORLD (CNE100000296) it has also been exposed to the wind for some time now. The Chinese carmaker was now able to get the mark with the presentation of the next generation of its blade batteries. It should see the light of day this year and ensure greater range while maintaining lower costs. Expectations are up to 1,000 km, although this will of course also depend on the vehicle in which the batteries are used.

There is already no lack of demand today. Blade batteries are used by several well-known manufacturers, and even competitor Tesla relies on them to some extent. The new generation seems to be restoring confidence to investors. BYD shares rose more than one percent to 24.85 euros on Thursday. This is encouraging, but still not trend-setting progress.

Dividends at Deutsche Telekom

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To die Deutsche Telekom (DE0005557508) he had to admit a little defeat in the end. The Federal Network Agency submitted a draft fee for the use of bare fiber optic pipes that was significantly lower than the fees proposed by Telekom. However, that was not the reason why the share price fell by almost three percent to 21.21 euros yesterday. The general meeting was responsible for this, after which the part was sold for the old share. It costs 0.77 euros per share, which is almost ten percent more than a year ago.

If you exclude the dividend effect, the T-share would leave yesterday’s trade with a green symbol, calculating “Der Aktionär”. The actual payment to shareholders’ accounts is expected to take place on Monday. Deutsche Telekom also offers the possibility of increasing dividends in the future. Investors can decide for themselves if some of the shortcomings in the domestic market can be ignored.

Bayer can’t get a chance

Yesterday the stock price was slightly below the depth Bayer (DE000BAY0017), which fell by almost two percent to 27.02 euros. However, a large pharmaceutical company unfortunately does not have the controversy that can hide the loss in some way. The small recovery from March seems to be melting again and confidence is not holding the market.

Bayer has certainly managed to send one or two positive signals in recent weeks. However, it is still not enough to be able to ignore the serious problems and legal disputes over glyphosate or the high level of debt, and these issues are only the tip of the iceberg. The stock is still not attracting investors and the turnaround remains fantasy territory for now.

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It could be worse

It doesn’t feel like a rally in the stock market this week. However, the bulls were also able to prevent a very significant correction and therefore there was stability at a higher level. The DAX fell below the line by 18,000 points again, but could still trade on Friday. Basically, buyers are still awake and there can be no talk of a crash yet. Whether it stays that way is of course another matter.

12.04.2024 – Andreas Göttling-Daxenbichler

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