Bonds: Flourishing Green Bonds ()

Germany’s first eco-bond was sold extremely well, and Daimler’s green bond was oversubscribed several times. Adidas successfully issues two conventional bonds. When it comes to trading corporate bonds, the focus is on Stada, BMW, Sixt, Preos and Ferratum.


September 4, 2020. FRANKFURT (Frankfurt Stock Exchange). Demand for the federal government’s first eco-bond was huge. Instead of the desired 4 billion, the state raised 6.5 billion euros over a ten-year bond and pays investors no interest for it. “There were orders in the books amounting to around 35 billion euros,” says Arthur Brunner. Because the interest was so great, according to the dealer at ICF Bank, the yield is currently 0.1 percent lower than that of a conventional bond with the same term. More green bonds are to follow later this year. Among other things, the finance agency is planning to issue a five-year paper of this type in the fourth quarter.

“The money will be used to finance environmental projects.” The five sectors that will receive proceeds from the bond include transport, natural landscapes and biodiversity, international cooperation, research, industry, agriculture and forestry, as well as innovation and awareness-raising.

Car manufacturers also collect “green money”

While Volkswagen announced last week that it would raise more than 1 billion euros via a green bond in September, Daimler is already active. The Stuttgart carmaker yesterday successfully issued a ten-year green bond (WKN A289QR) with a coupon of 0.75 percent and thus borrowed 1 billion euros. “The demand was good, orders of over 4 billion euros were received,” says Brunner.

Arthur brunner

Brunner

According to Daimler, the proceeds from green financing instruments will be used, for example, for the development and production of emission-free vehicles with battery and fuel cell electric drives. A Green Finance Investor Report provides regular information on the use of the proceeds and the climate effects of the projects.

Sustainable bonds are booming

Bloomberg sees ESG bonds – the abbreviation stands for Environment, Social and Governance – heading for a record year. The emissions currently totaled 105 billion euros and were thus just below the previous high of 2019. Many states would have received money through these bonds for measures in the fight against the corona pandemic.

Adidas taps into the capital market

About two new conventional bonds with terms of four (WKN A3H2X0) and 15 years (WKN A3H2X1) According to Brunner, Adidas refinanced itself without any problems through the capital market with a total volume of 1 billion euros. The former offers a coupon of 0 percent and started with a negative return at an issue price of 100.321 percent. Adidas pays nominal interest of 0.625 percent annually for the paper, which runs until 2035. Both bonds are traded in pieces of 100,000 euros. “The sporting goods manufacturer only received state aid in the spring.” Adidas wants to repay these loans as quickly as possible.

Stada, BWW and Sixt move the mind

In trading with existing corporate bonds, Gregor Daniel from Walter Ludwig Wertpapierhandelsbank sees considerable sales with predominantly purchases in a Stada bond (WKN A14KJP). The value due in 2022 with a coupon of 1.75 percent is currently 101 percent, after a good 100 percent at the beginning of the week.

Daniel

Also mostly in the custody accounts is a popular bond from BMW (WKN A18Z75) with a coupon of 0.75 percent. The 750 million euro value currently costs 102.61 percent and thus pays off by zero percent.

A Sixt leasing bond due in February 2021 (WKN A2DADR) with a coupon of 1.125 percent, the bottom line is that investors parted ways.

Asked Preos and Ferratum

Most of the time, Brunner booked purchases in a bond from Ferratum (WKN A2TSDS) with a volume of 100 million euros. Since Monday, the value has risen from 83.25 to 87.50 percent and thus brings a return of 11.48 percent.

Brunner is generating lively demand on the buy and sell side in a Preos Real Estate AG convertible bond due in December 2024 (WKN A254NA) with a coupon of 7.5 percent. The bond is currently trading at 99 percent.

by: Iris Merker

September 4, 2020, © Deutsche Börse AG

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5.30 percent chance: Dax with a 16 percent discount

The Dax is already approaching its highs of February 2020. With discount certificates, investors can generate positive returns even if the Dax does not continue to rise at the rate of the past few months.

Contrary to many expert opinions, who granted the Dax only limited recovery potential after the crash in March to up to 8255 points, the index was able to recover almost the entire price loss within just five months.

Dax 13.033,20

After even stubborn skeptics had to take note of the V-recovery of the stock exchanges, it now seems only a question of time for many market participants when the index will return to its old highs of February 2020.

The investment idea

Although the mood on the German stock market is currently good, there is a likelihood of a decline in the Dax in the next few months. If you want to swap the risk and chance of a direct index investment for a predefined return, you could consider investing in discount certificates on the Dax.

With selected discount certificates on the index, investors can achieve high returns over the next few months even if the index is trading well below its current level in June 2021.

How it works

If the Dax is quoted at or above the cap on the certificate’s valuation day, which defines the certificate’s highest payout amount, the discount certificate will be repaid with its maximum amount of 120 euros.

The key data

The JPMorgan Discount Certificate (ISIN: DE000JM4NHQ0) has a cap of 12,000 points and a subscription ratio of 0.01. The valuation date is June 18, 2021, the certificate will be repaid on June 25, 2021. At the Dax stand of 13,176 points, investors could buy the certificate for 113.95 euros. The certificate is therefore 15.63 percent cheaper (hence the discount certificate) than the Dax index.

The chance

Since investors can currently purchase the certificate for 113.95 euros, it enables a gross return of 5.30 percent (6.60 percent per year) over the next ten months if the index does not compare to 8.92 percent on the valuation date its current value in the minus. In the case of Discount Certificates, in contrast to Bonus Certificates, only the closing price relevant on the valuation date is of importance for the investment result.

The risks

If the Dax is listed below the cap of 12,000 points on the valuation day, the certificate will be repaid in accordance with the subscription ratio of 0.01 at one hundredth of the closing price of the Dax determined on the valuation day. If the index then trades below the purchase price of the certificate, i.e. below 11,395 points, then the investment – before expenses – will yield a loss.

This article does not constitute a recommendation to buy or sell the Dax or investment products on the index. No liability is assumed for the accuracy of the data.

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These are analyst recommendations for big caps stocks that fill the top 10 JCI laggards

ILLUSTRATION. Cleaners clean the IDX logo on the Indonesia Stock Exchange, Jakarta, Monday (20/4).

Reporter: Nur Qolbi | Editor: I knew Laoli

KONTAN.CO.ID – JAKARTA. Large market cap stocks are still perched in the top ten laggards of the Composite Stock Price Index (IHSG) throughout 2020.

Call it PT Telekomunikasi Indonesia Tbk (TLKM), PT Bank Mandiri Tbk (BMRI), PT Chandra Asri Petrochemical Tbk (TPIA), PT Barito Pacific Tbk (BRPT), PT Bank Negara Indonesia Tbk (BBNI), PT HM Sampoerna Tbk (HMSP), PT Indocement Tunggal Perkasa Tbk (INTP), and PT Perusahaan Gas Negara Tbk (PGAS).

In fact, the JCI itself has shown improved performance in recent months. During the past month, JCI rose 4.39% and increased 14.91% in the past three months.
On Wednesday (19/8), the IHSG closed down 0.42% to the level of 5,272.81.

Also Read: Big cap stocks on the US stock exchange are dominated by technology companies, Indonesian banks

Pilarmas Investindo Sekuritas analyst Okie Ardiastama is of the opinion that these stocks are perched as JCI laggards along with investors taking profit-taking. Given, the prices of these shares have risen quite high.

TLKM, for example, since the JCI reached its lowest position at 3,911 on March 24, 2020, TLKM’s shares have reached a price of Rp 3,540 per share. Likewise with BMRI which once reached the level of Rp 6,275 per share.

On the other hand, TLKM once slumped to its lowest position at Rp 2,550 and BMRI Rp 3,660 per share. Currently, the price of TLKM per share is IDR 3,000 and BMRI IDR 6,100.

Meanwhile, Main Services Analyst at Capital Sekuritas Chris Apriliony assessed that some of these stocks were lagging the JCI because fundamentally they were not attractive and some were not liquid. Even so, he saw an opportunity to accumulate some stocks that still had good prospects.

“In general, companies such as TLKM, BBNI, BMRI, and PGAS are still quite attractive because their performance is still quite good,” said Chris when contacted by Kontan.co.id, Wednesday (19/8). What’s more, the valuation of the four shares is considered cheap.

Also Read: The JCI this week strengthened, supported by the improvement in Indonesia’s balance of payments

Compared to the price one year ago, TLKM’s share price is currently 29.91% lower and BMRI -21.54%. Even PGAS corrected 34.75% and BBNI -38.79%. Chris recommends buying TLKM shares with a target price of Rp 3,400 per share, BMRI Rp 7,200, PGAS Rp 1,800, and BBNI Rp 6,000 per share.

In a similar vein, Okie also considered that the shares of BMRI, BBNI and PGAS were attractive to be collected. According to Okie, the realization of the National Economic Recovery (PEN) program can support the growth of BMRI and BBNI.

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Börse Express – analysts on Addiko Bank, OMV, Palfinger, Raiffeisen Bank International and S&T

JP Morgan confirms the neutral recommendation for Raiffeisen Bank International – and increases the price target from EUR 12.8 to EUR 15.3. now no longer the lowest of all price targets. Last closing price: 15.88 euros – average target price: 19.45 euros.

Morgan Stanley reduces OMV’s recommendation from over- to equilibrium – and its price target from EUR 35.7 to EUR 31.8. Last closing price: 29.74 euros – average target price: 36.12 euros.

Berenberg confirms the Buy recommendation for Palfinger – and increases the price target from EUR 25.0 to EUR 27.0. Last closing price: 23.3 euros – average target price: 25.93 euros.

RCB increases Addiko Bank’s recommendation from Reduce to Hold – and confirms the price target of 7.2 euros. The lowest of all course targets. Last closing price: 5.91 euros – average target price: 9.35 euros.

Pareto Sec confirms the Buy recommendation for S&T – and increases the price target from EUR 29.0 to EUR 33.0. Which sets the highest of all course targets. Last closing price 25.08 euros – average target price: 29.5 euros.

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DAX outlook: mood barometer cloudy outlook

Frankfurt In the past weeks there have been repeated attempts to recover the course, on some days one could believe that the corona pandemic has already been overcome. But on Friday, disillusionment returned – the collapsed ifo business climate index made the whole dilemma clear.

The course of the mood barometer looks like a “Highway to Hell”, was the analysis of the VP Bank. The index is now significantly below the values ​​of the crisis year 2009. The simple message for the future was: “Massive income losses are imminent. We will all get poorer. This applies not only to Germany, but to all economies. ”Sometimes it is better to hear the unvarnished truth.

Other analysts and experts are also skeptical about the weekly outlook. Cautious savings by consumers and companies create a completely different economic and inflation environment than one knows from the post-war period, the analysts at MFS Investment Management believe.

They expect the earnings recovery to be weaker than the market and point to the possible dilution of earnings through capital increases. They particularly highlight 2008 as a comparison.

“When the extreme risk of the international financial crisis subsided, companies were no longer concerned with distributions, but with recapitalization. To this end, new shares were issued – at the expense of existing shareholders, whose capital was heavily diluted, ”said the investment professionals. The new wave of recapitalization has probably just started. In the past few weeks, leisure companies and service providers in the United States and Europe have already offered new shares.

Warning to bargain hunters

The BLI – Banque de Luxembourg Investments is also cautious. “The financial markets are currently giving the impression that they are underestimating the extent of the economic damage and are counting on a rapid recovery as soon as the containment measures are reversed,” is the BLI’s assessment.

Many investors are conditioned to view any decline as an opportunity to buy. However, the analysts recall that while the fall in share prices in February / March was dramatic, the valuations were also very high. As a result, the markets today are anything but cheap, especially after the recent price recovery.

Quality companies with a very solid balance sheet, one or more sustainable competitive advantages and the ability to self-finance should be preferred. The main factor that will continue to speak for stocks remains the low interest rate level and thus the lack of alternatives. At the same time, gold will become an “indispensable part of a balanced portfolio because of the inflation risks.”

After the significant recovery since mid-March, the European stock market has recently lost some momentum, the Weberbank experts believe. In addition, the balance sheet season that is already underway shows significant impacts on corporate balance sheets due to the global “lockdowns”.

Correspondingly, the analysts have also significantly lowered their profit expectations for industrial companies, but also for the banking and energy sectors. Due to the economic slump, banks faced increased write-downs on their credit books and the massive drop in yields clouded interest income. Most recently, they also negatively impacted the rating agency Standard & Poor’s (S&P).

The Deutsche Bank and the Commerzbank were therefore particularly under pressure on Friday “We continue to distance ourselves from these sectors and prefer creditworthy pharmaceuticals or companies from the non-cyclical consumption. In addition, titles from the technology sector are promising in our eyes, ”said the Weberbank experts.

Central banks meet worldwide

If the economic situation continues to be poor, the states and central banks will have to take further support measures. Robert Greil, chief strategist at Merck Finck Privatbankiers, sees an opportunity for this next week because the European Central Bank, the US Federal Reserve and the Bank of Japan are meeting.

“As a result of the unprecedented economic downturn caused by the Covid 19 consequences, all central banks will reaffirm their willingness to support,” says Greil. The economic downturn left neither governments nor central banks a choice but to take further measures to support and recover the economy.

The gross domestic product for the first quarter of 2020 will be published in the euro area on Thursday, and new growth figures will come in the US on Wednesday. Further important economic data in Germany are the preliminary inflation figures and the labor market report for April.

According to DZ Bank, the next quarter should bring an improvement in the economy, but there does not have to be a “V” or “I” recovery. This is not ignored on the stock market, many stocks are up to 80 percent down.

A large number of “mega-caps” hold up against this, mainly in the USA. Amazon, Google, Microsoft, Netflix and Facebook, but also Adobe or Comcast, be stable on the way. Things are also going well for the great values ​​of the “old economy”, including Pepsico, Johnson & Johnson, Procter & Gamble, Home depot and Pfizer. The German Leading index Dax the strategists from DZ Bank see 11,200 points by the end of the year, and the S & P-500 for US equities at 2,800. This would at least stabilize in the medium term.

More: Yield in Corona times: With which investments you can still make money

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How professionals position themselves on the stock exchange

Frankfurt Stock Exchange

Many investors are puzzled as to where the markets will go.


(Photo: dpa)

Frankfurt The uncertainty is great. The oil price and many stock prices are in the basement. The mood among many managers is bad. The corona crisis keeps the financial markets in suspense every day. Many investors are now thinking more than ever about where to invest their money in these unstable times.

Because the violent ups and downs on the markets shows that there is still no peace on the stock exchanges. This leaves many investors in doubt about their previous investments. Keep or prefer to sell? This is an important question for many investors, especially with equities.

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Wall Street gets off to a good start – US unemployment figures have dropped

Wall Street

The New York Stock Exchange is located on the famous street.

(Photo: AP)

Dusseldorf The declining number of first-time jobless claims in the US seems to be giving investors hope that the economy will quickly recover from the corona shock. The Dow Jones started the trading day with a profit increase of around one percent at 23,543 points. The situation was similar at the start of trading for the S&P 500 (2810 points) and the Nasdaq (8529 points).

The prospect of further stimulus from the US government had prompted investors to buy stocks again on Wednesday. The standard value index Dow Jones closed two percent higher at 23,475 points. The technology-heavy Nasdaq advanced 2.8 percent to 8495 points. The broad S&P 500 gained 2.3 percent to 2799 points.

As announced on Thursday, the number of first-time job applications in the US has decreased compared to the previous week: by April 18, 4.4 million Americans had registered unemployment. Previously, 5.2 million people applied for new support. In the meantime, 26 million people have lost their jobs within a month.

However, it is certain that the corona pandemic thus slowed the positive development of the US labor market: In February, the USA celebrated the lowest unemployment rate in decades, and until March, initial applications were regularly below 100,000 a week. Some analysts estimate the US unemployment rate as high as 15 percent.

Look at the individual values

Of the Casino operator Las Vegas Sands expects the important Asian business to recover quickly as soon as the travel restrictions there are lifted. Las Vegas Sands shares then rose 13 percent, while competitors Wynn and MGM gained up to 12 percent.

Things looked worse with the papers from Target out. Although the retailer’s online sales almost quadrupled in the past quarter, thereby compensating for the losses due to closed stores, the share came under pressure: the company warned of shrinking profit margins due to wage increases for employees. The Target shares lost 5.9 percent.

With agency material.

More: Read here what moves the German stock market on Thursday.

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Bear market rally: extremes on the stock markets: analysts fear new slumps

Many experts do not trust the current rally on the global stock markets after the unprecedented crash of the stock markets. There are many reasons for that. .

Ten major banks are accused of manipulation of the corporate bond market

Deutsche Bank

The German money house is accused of years of manipulation.


(Photo: Reuters)

new York A US lawsuit accuses ten of the world’s largest banks of manipulating the corporate bond market. According to this, the money houses – including Deutsche Bank – have been asking for high prices for almost 14 years, as can be seen from court documents on Tuesday. As a result, investors were financially damaged.

The accused financial institutions include JPMorgan Chase, Bank of AmericaBarclays Citigroup, Credit SuisseDeutsche Bank Goldman Sachs, Morgan Stanley, Royal Bank of Scotland and Wells Fargo. Bank of America, Barclays, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs and Wells Fargo declined to comment.

More: Ex-top manager of Deutsche Bank sentenced to prison.

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Netflix wins significantly more customers than expected due to pandemic

Netflix

A man turns on Netflix: According to the streaming service, 15.8 million paying customers were added worldwide in the first quarter.


(Photo: dpa)

Los Angeles / Bangalore / Los Gatos The coronavirus pandemic brought Netflix significantly more viewers than expected in the first quarter. Worldwide, 15.8 million paying customers were added, said the US company on Tuesday after the market closed. Experts predicted nearly eight million, according to the FactSet research group. It brought it to the end of the quarter Netflix a total of almost 183 million paid memberships.

Netflix said that customer growth and the amount of time spent in front of the screen could decrease with the end of contact restrictions. Nevertheless, the company expects 7.5 million new customers worldwide in the current quarter, almost twice as many as analysts estimate.

Revenue for the quarter rose to $ 5.8 billion from $ 4.5 billion in the prior year period, roughly in line with expert expectations. Net income was 709 million, more than twice the previous quarter.

Netflix shares initially rose more than five percent in after-hours trading, but later turned negative. So far, it has gained more than a third this year. In terms of market value, Netflix was even able to beat its big rival Disney pass by.

More: Ufa boss Nico Hofmann: “We have to do similar things to football”.

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