Mercedes 2006 Annual Report Download - page 42

26
DaimlerChrysler Shares
Ongoing positive development of international stock markets | DaimlerChrysler’s share price
increases by 8% in 2006 | Focus on key stock exchanges | More than 70,000 shareholders use our
Personal Internet Service
Upward trend for international stock exchanges. The generally
robust state of the world economy and the stable development of
companies’ profits were reflected by further share-price increases
on international stock markets in 2006. The Dow Jones Euro Stoxx
50 rose by 15%, the Dow Jones Industrial Average by 16% and the
Nikkei by 7%, while the DAX actually gained 22%. Global stock
markets fluctuated sharply during the year, however. Following
significant gains in the spring, sales of stocks in May led to
falling prices. This was partially a result of profit taking, but also
because many investors were concerned about increasing
evidence of inflationary tendencies and the incipient weakening
of the US economy. Other negative factors were the high oil
price at that time of well over US $70 per barrel and the conflict
in the Middle East. But demand for stocks increased in
the second half of the year and prices rose again significantly.
The German stock market displayed a particularly positive
development in 2006, profiting from its attractive valuations
relative to other markets and also from a significant
brightening of the country’s economic outlook.
The S&P Automobiles Industry Index (of automobile manufacturers
and suppliers in the United States) and the European Dow Jones
Stoxx Auto Index each returned an above-average performance,
although the share prices of the various European and US
automobile producers increased for very different reasons.
Whereas some stocks rose following the announcement of
corporate restructuring measures, others climbed due to solid
earnings or positive profit forecasts for the coming years.
And prices of some companies’ stocks benefited from the
acquisition of large numbers of shares by strategic investors.
In 2006, the US index S&P Automobiles Industry rose by 29% and
the European Dow Jones Stoxx Auto Index climbed by 26%.
Positive development of DaimlerChrysler’s share price.
After DaimlerChrysler’s share price had closed the year 2005 in
Frankfurt (Xetra trading) at €43.14, the upward trend of the
previous months continued in the first few weeks of 2006.
By the middle of February, the price had risen to €50. But
DaimlerChrysler shares were not immune to the generally weaker
market environment in the spring. In addition to the incipient
growth slowdown in the United States, there was pressure to sell
due to industry-specific factors such as ongoing intense com-
petition in the US automobile market, the high oil price and rising
interest rates. The earnings situation and expectations for the
Chrysler Group were also a burden. By the end of June, the price
of DaimlerChrysler shares had therefore fallen to €37.01. This
was its lowest level for the year, as many investors became
convinced that too much weighting had been given to the negative
factors and that the shares were attractively valued considering
their earnings potential and dividend yield.
46.80
6,597
4,120
12,463
17,226
290
121
+8
+22
+15
+16
+7
+26
+29
06/05
% change
43.14
5,408
3,579
10,718
16,111
231
94
End of
2005
DaimlerChrysler share price (in €)
DAX 30
Dow Jones Euro Stoxx 50
Dow Jones Industrial Average
Nikkei
Dow Jones Stoxx Auto Index
S&P Automobiles Industry Index
End of
2006
Development of DaimlerChrysler’s share price and relevant indices
DE0007100000
710000
D1668R123
DCX
DCXGn.DE, DCX.N
DCX:GR
ISIN
German securities identification number
CUSIP
Stock-exchange abbreviation
Reuters ticker symbol
Bloomberg ticker symbol
Stock-exchange data for DaimlerChrysler shares