BMW 2014 Annual Report Download - page 87

87 COMBINED MANAGEMENT REPORT
BMW Stock and Capital Markets in 2014
BMW stocks rose to a new alltime high of € 95.51 per
share of common stock in 2014. The BMW Group
continues to have the best ratings in the European
automobile sector, enabling it to continue benefiting
from excellent
access to international capital markets.
Turbulent year for stock markets
International stock markets experienced broad fluctua-
tions in 2014, attributable primarily to the expansionary
monetary policies of the ECB and to political instability
in a number of countries.
At the beginning of the year, stock markets were bur-
dened by uncertainties surrounding the Ukraine crisis
and its likely negative economic impact. At the same
time, favourable economic data from Europe, the USA’s
improved employment market and the US Reserve
Bank’s continued policy of monetary expansion pro-
vided some positive momentum. Over the course of
the second and third quarters, the ECB’s expansionary
monetary policies provided an additional boost. The in-
terest rate for the Eurosystem’s main refinancing opera-
tions was reduced by 10 basis points in June to 0.15 %
and by a further 10 basis points to 0.05 % in September
and has remained at its new historical low since that
time. A state of nervousness prevailed on the world’s
finan cial centres during the third quarter 2014. The
sharp loss in value of the rouble and the threat of state
bankruptcy in Ukraine caused the mood of investors
to deteriorate. In October the DAX fell to its low for the
year of 8,572 points. By the end of the year, however,
the more stable situation in the Ukraine crisis brought
about by agreement in the gas dispute with Russia,
combined with the fall in oil prices, helped markets to
steady and gather momentum. The DAX recorded a
new all-time high of 10,087 points on 5 December,
before closing on the last day of trading below its high
level for the year at 9,806 points, thus achieving a gain of
254 points (+ 2.7 %) over the volatile twelve-month period.
The EURO STOXX 50 recorded a gain of 1.2 % in 2014
and closed on 31 December at 3,146 points.
The Prime Automobile Index performed even better,
gaining 7.0 % over the year under report to reach
1,490
points.
After a weak start to the year, BMW common stock sub-
sequently climbed to a new high of € 95.51 in June. After
falling back to a low for the year of € 77.41 in October,
it returned to an upward trend in the fourth quarter and
finished the year at € 89.77, 5.3 % higher than one year
earlier. BMW preferred stock gained 9.3 % in value com-
Development of BMW stock compared to stock exchange indices
(Index: December 2009 = 100)
325
300
275
250
225
200
175
150
125
100
10 11 12 13 14
BMW preferred stock
BMW common stock
Prime Automobile
DAX
BMW preferred stock BMW common stock Prime Automobile DAX
Development of BMW stock compared to stock exchange
indices since 30 December 2009
in %
300
250
200
150
100
50
BMW BMW Prime DAX
preferred stock
common stock Automobile
295.0 282.3 274.4 164.6