Struggling DAX constituents: Spotlight on Bayer, Evonik, BASF, SFC Energy, and Cancom
The German benchmark index, the DAX, is expected to begin August on a weaker note, with losses anticipated for the MDAX and SDAX due to new profit warnings from several companies.
One of the companies causing losses for the DAX is Evonik Industries, a German chemical company listed on the index. The company has adjusted its EBITDA expectations for the current fiscal year to the lower end of the 2.0 to 2.3 billion euro range, reflecting a more cautious outlook for the year.
Evonik is joined by Brenntag, BASF, and Covestro in adjusting their targets for the current year, adding to the pressure on the DAX.
SFC Energy, a fuel cell specialist listed on the SDAX, has also issued a substantial profit warning. The company's shares have fallen sharply, by nearly 30%, following the announcement of weak performance and disappointing results for the first half of the year.
Cancom, another SDAX-listed IT service provider, is also facing challenges. The company has become more cautious following a disappointing half-year financial report, resulting in a decline of around 12.4% in its share price.
Novo Nordisk, a pharmaceutical company, has also contributed to the downward pressure on the DAX with a decline of about 16.9% in its share price, linked to a lowered forecast and management changes.
Bayer, another company causing losses in the DAX, has not had any specific recent causes detailed in the search results, but its inclusion in the context suggests it is experiencing similar market or sector-related headwinds affecting investor sentiment and valuations in the DAX.
Overall, these losses reflect a combination of weak corporate earnings reports, lowered outlooks, and cautious guidance by multiple companies within the index, amplifying selling pressure and leading to the DAX giving back prior gains, as observed with an overall index decline of approximately 1.27% to around 23,759 points within early trading sessions.
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- The challenging financial situation in the industry is evident, as Evonik Industries, Brenntag, BASF, Covestro, and Bayer, among others, have all adjusted their expectations for the current year, contributing to a more cautious outlook and pressure on the DAX.
- The energy sector is also experiencing turbulence, with SFC Energy issuing a substantial profit warning, resulting in a sharp decline in its share price and raising concerns about the overall performance and results within the sector.