German shares decline after election deadlock

19th September 2005, Comments 0 comments

19 September 2005, FRANKFURT - Shares on the German stock market declined when trading opened Monday, with analysts attributing the fall to uncertainty following an election which provided no clear result. The main DAX index of the 30 leading shares fell by 2.11 per cent to 4881. Other indices showed a similar decline. Robert Halver of the Swiss company Vontobel Asset Management said: "The stock exchange loves clarity. But this is not the case, as all sorts of coalitions are possible after the elections."

19 September 2005

FRANKFURT - Shares on the German stock market declined when trading opened Monday, with analysts attributing the fall to uncertainty following an election which provided no clear result.

The main DAX index of the 30 leading shares fell by 2.11 per cent to 4881. Other indices showed a similar decline.

Robert Halver of the Swiss company Vontobel Asset Management said: "The stock exchange loves clarity. But this is not the case, as all sorts of coalitions are possible after the elections."

Fund manager Thomas Meier of Union Investment predicted the market would swing back and forth over the days ahead.

"But we see no reason for a clear trend downwards," he said. He expressed the hope that coalition talks would be concluded quickly.

"There is one thing the stock exchange does not like, and that is uncertainty," he said.

The euro hit its lowest level in a month, trading at 1,2132 dollars.

"The uncertainty is weighing on the euro," analysts at the National Australia Bank said.

Preliminary official results gave challenger Angela Merkel's CDU/CSU alliance a narrow plurality of 35.2 per cent against 34.3 per cent for Chancellor Gerhard Schroeder's SPD.

Neither party can form a governing coalition with its preferred partner, suggesting that drawn-out and difficult political horsetrading lies ahead.

DPA

Subject: German news, German elections

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