Companies Make the First Moves to the Stock Market

March 25, 2010 - PRLog -- Baech (Switzerland) – After the most important U.S. indices already reached their annual highs last week, the DAX also continued its rally this week and made another attempt to accomplish its 12-moths-high at 6,094 points, which it had lastly reached in January this year. This ongoing trend is in particular caused by positive economic data from the USA. „The Philadelphia business climate index was much better than estimated and the unchanged consumer prices indicate that the danger of inflation is still low,“ explains Bernd M. Otto, CEO of Investment24 AG.

The initial public offering (IPO) of Kabel Deutschland this week seems to be a clear evidence, that the market confidence comes back slowly. With a volume of almost 760 Million Euro it is the largest German IPO since the flotation of Hamburger Hafen und Logistik AG (HHLA) in November 2007. Last Monday (March, 22nd) Kabel Deutschland could place on the market 34.5 Million shares at a price of 22 Euro and celebrated its debut at the stock market.

This is only one of about 30 IPOs, which are planned this year in Germany. Thus, also Brenntag, a producer of chemicals as well as the fashion chain Tom Tailor and the Chinese manufacturer of fittings Joyou want to go public before Easter. Whilst everywhere else the number of IPOs is increasing since the mid of 2009, the financial center Frankfurt can now also benefit from this positive trend. „Even though the sentiment of investors bettters, until now only five of the twelve stock market newcomers this year in Europe list above their issue price of shares”, states Bernd M. Otto from Investment24 Research.

For the trader the growing number of IPOs is rather a sign that the ongoing upward trend of the stock markets could come to an end soon. „It remains to be seen, if the market will be able to absorb the planned new issues easily“, analyses Bernd M. Otto. A few weeks ago the press agency Bloomberg published in a report that equity mutual funds have recently invested so heavily in stocks that cash dropped to 3.6 percent of assets. The last time stock managers held such a small proportion was in mid 2007, shortly before the outbreak of the financial crisis.

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About Investment24:
Investment24 AG, based in Switzerland, provides quality information about interesting opportunities on world stock markets. The company not only demonstrates a positive performance in excess of 350 percent since July 2007, but it also offers a high degree of transparency. This is in sharp contrast to other stock market or financial services newsletters. All transactions are explained in detail, and are provided with background information. These results are achieved with professional risk and money management. CEO and editor of the stock market letter is Bernd M. Otto, supported by experienced staff.
www.investment24.com