Pharmaceutical supplier Sartorius with a pessimistic outlook - effects on share prices and DAX

Pharmaceutical supplier Sartorius with a pessimistic outlook - effects on share prices and DAX

It rarely happens that individual companies are in focus on almost all trading days of a trading week. The pharmaceutical supplier Sartorius published such a pessimistic outlook last Friday that it took investors a few days before they could properly assess the significance of the new figures. Sales will decrease by 17 percent this year. Profits have already fallen by 30 percent in the last three quarters of this financial year. The company from Göttingen justified this with the geopolitical situation and the situation in the pharmaceutical industry.

Such statements always make traders prick up their ears, and pharmaceutical companies like Merck also found themselves caught in the downward spiral of Sartorius shares at times. On a weekly basis, the stock lost a fifth of its value. After a sharp decline in price on Friday, Sartorius was still one of the weakest stocks in the Dax at the beginning of the week. Even after a rebound on Thursday, the general trend is negative again.

The price weight of Sartorius in the DAX is manageable. Nevertheless, the situation of the laboratory equipment supplier also reflects the situation of other companies, which are falling behind due to geopolitical dynamics and the economic situation. In the first half of the week, the leading German stock market barometer remained above the 15,000 point mark. On Friday he fell below it.

The fact that the index did not break the psychologically significant line earlier had to do with a convincing performance by the DAX heavyweight SAP, which announced on Thursday that it would increase sales despite the tense situation and that operating profit would also increase. This caused the SAP price to rise from around 121 euros to more than 125 euros on Thursday. Within a year, the price has improved by a good 40 percent. The chairman of the board, Christian Klein, confirmed the forecast that the Walldorf-based company's profit would grow by a double-digit percentage this year. Total sales rose 9 percent in the first nine months of the year. And the operating result was higher than the group's analysts had previously expected.

Cloud sales, which are sometimes described as the future business of the corporate billing service provider, did not quite meet expectations. Nevertheless, it was enough for an interim price increase of 6 percent, which was able to stabilize the DAX at times. Good business figures from sporting goods manufacturer Adidas also had a positive impact on Wednesday. After the change in leadership, trust in the board seems to be more stable here.