Sept. 26 (Bloomberg) -- German stocks gained, led by E.ON AG, RWE AG and Deutsche Boerse AG.
Bayerische Motoren Werke AG advanced after a magazine report said Chief Executive Officer Norbert Reithofer plans to boost profitability at the world's biggest luxury carmaker.
The benchmark DAX Index rose 34.71, or 0.5 percent, to 7,804.15. DAX futures expiring in December increased 29, or 0.4 percent, to 7,886 at 5:43 p.m. in Frankfurt. The HDAX Index of the country's 110 biggest companies rose 0.5 percent.
``The markets are returning to normality,'' said Babak Kiani, head of equity portfolio management at HSBC Investments Deutschland in Dusseldorf, which has $6 billion in equities under management. ``A lot of bad news is priced in already. Looking at valuations there's not much to worry about.''
E.ON added 1.61 euros, or 1.3 percent, to 129.48 euros. JPMorgan Chase & Co. raised its price estimate for the world's largest utility by sales 11 percent to 155.7 euros citing higher CO2 price forecasts.
The brokerage also increased its price projection for RWE, Germany's second-largest utility, by 9.6 percent to 80.2 euros. RWE shares rose 1.49 euros, or 1.7 percent, to 88.21 euros.
Deutsche Boerse advanced 3.21 euros, or 3.4 percent, to 96.61 euros. Credit Suisse Group raised its price estimate for shares of the operator of the Frankfurt Exchange 7.5 percent to 115 euros, citing better earnings prospects. The brokerage has an ``outperform'' recommendation on the stock.
Trading Platform
Separately, the Bulgarian Stock Exchange decided to buy a trading platform from Deutsche Boerse to expand investors' access to companies in Bulgaria. The Sofia-based bourse chose Deutsche Boerse over Sweden's OMX AG and exchanges in Austria, Greece and Poland, Chairman Viktor Papazov said today in Sofia.
BMW advanced 1.41 euros, or 3.1 percent, to 46.68 euros. Reithofer plans to increase the carmaker's return on sales to ``more than'' 8 percent in 2012 at the latest, Capital reported, without citing anyone.
Reithofer intends to boost the return on capital during that same timeframe to ``more than'' 26 percent, the German magazine said. BMW spokesman Marc Hassinger declined to comment when contacted by Bloomberg.
The following stocks also rose or fell in German markets. Symbols are in parentheses.
Arques Industries AG (AQU GY) climbed 86 cents, or 2.6 percent, to 34.45 euros. The investment company that owns stakes in machinery makers will replace Depfa Bank Plc (DEP GY) in Germany's MDAX index of 50 medium-sized stocks on Oct. 1, Deutsche Boerse AG said today. Depfa shares added 6 cents, or 0.4 percent, to 14.05 euros.
Homag Group AG (HG1 GY), a maker of machinery that sold shares to the public in July, will take Arques' place in the SDAX index of smaller companies, Deutsche Boerse said. Homag shares slipped 50 cents, or 1.9 percent, to 26 euros.
EM.Sport Media AG (EV4 GY), the owner of assets including the DSF sports television channel, climbed 9 cents, or 2 percent, to 4.56 euros. Leo Kirch, the German media entrepreneur who once owned the country's biggest broadcaster, will get 11.5 percent of the company in exchange for a stake in Highlight Communications AG, EM.Sport said today.
Lanxess AG (LXS GY) sank 68 cents, or 2 percent, to 32.92 euros. JPMorgan Asset Management Holding Inc. cut its stake in the company below the threshold of 3 percent of voting rights, the world's largest producer of synthetic rubber said today.
Stakeholders of German companies are obliged to declare share purchases or sales that bring their investment above or below certain thresholds.
MorphoSys AG (MOR GY) rose 1.64 euros, or 3.8 percent, to 45.22 euros. The biotechnology company that turned profitable in 2004 said the U.S. Patent & Trademark Office has granted another patent for its antibody technology.
Salzgitter AG (SZG GY) slipped 1.36 euros, or 1 percent, to 140.40 euros. Goldman, Sachs & Co. removed Germany's second- largest steelmaker from its ``conviction buy'' list.
SKW Stahl-Metallurgie AG (SK1 GY) jumped 3.16 euros, or 11 percent, to 32.25 euros after the maker of chemicals used in the metal industry said Chief Executive Officer Ines Kolmsee bought 1,000 shares in the company yesterday.
Solon AG fuer Solartechnik (SOO1 GY) climbed 3.02 euros, or 4 percent, to 77.90 euros. Commerzbank AG raised its recommendation for shares of the solar-cell maker to ``buy'' from ``hold'' and increased its price estimate 33 percent to 88 euros.
TUI AG (TUI1 GY), Europe's largest travel company, gained 16 cents, or 0.9 percent, to 17.78 euros. TUI Travel Plc, the company formed when TUI AG's tourism unit and First Choice Holidays Plc merged, said annual profit will meet its forecasts.
``The signs for future seasons' trading are very encouraging, particularly in the U.K.,'' the Crawley, England based company said today.
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