Mercedes 1998 Annual Report Download - page 26

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THE DAIMLERCHRYSLER SHARES
22
In what turned out to be a turbulent year on the stock exchange, shares in both Daimler-Benz and Chrysler showed a positive
development in 1998. At the close of trading in November, shares were up by more than 20% compared with the end of 1997. On
November 17, 1998, the new DaimlerChrysler shares were quoted on the stock exchanges for the first time. As the first globally
registered stock, it is now being traded on 21 stock exchanges in eight countries. The share capital of
€
2.6 billion is distributed
among more than 1.4 million shareholders.
T H E D A I M L E R C H R Y S L E R S H A R E S
SHARP SWINGS IN SHARE PRICES. In 1998, share prices in We-
stern Europe and North America continued their decade-long
upward trend. On the other hand, Asian markets declined for
the third year in a row. In the first half of the year, high levels
of liquidity and lower interest rates helped produce an
unexpectedly strong rise in Western stock markets. The subse-
quent decline in share prices was triggered by difficulties in
Russia, which, together with a financial crisis in Latin America
and the already prolonged crisis in Asia, resulted in a loss of
confidence on the part of investors. Beginning in October, a
market recovery began to take hold in Western stock markets
after interest rates were reduced in the United States and
Europe. In New York, the Dow Jones index rose by 16% in the
course of the year. The London FTSE-100 Index rose by 15% and
the German stock exchange index (DAX) by 18.5%. On the other
hand, the Japanese Nikkei average fell by 9% and closed with
the lowest year-end value since 1985.
TREND IN SHARE PRICES OF DAIMLER-BENZ AND CHRYSLER
STOCKS. Daimler-Benz shares since late February 1998 have
consistently outperformed the DAX. In the wake of the
announcement of the merger of Daimler-Benz and Chrysler on
May 7, Daimler-Benz was quoted at more than DM 200 (about
€ 102). After adjustments for the special distribution of DM 20
(€ 10.23) per share and for the capital increase of June 1998,
share prices reached a new historical high at the end of July.
After the announcement of the merger, Chrysler share prices
rose more steeply than those of Daimler-Benz. In late July, the
former reached an annual high of almost US $61 per share.
Thereafter, both share prices followed almost in tandem the
downward-trend on international stock exchanges. The decision
of Standard & Poor`s not to include DaimlerChrysler shares in
75
100
125
150
175
MSCI Automobiles Index
DAX
Daimler-Benz
Chrysler
NOSAJJMAMFJ
Stock Market Performance 1998
90
100
110
120
130
MSCI Automobiles Index
DAX
DaimlerChrysler
M 99F 99J 99D 9817.
Nov.
98
Share Price Index
(as of Nov. 17, 1998)