German shares gain 2.60pc

3 June, 2020 12:00 AM printer

BERLIN: German stocks were off to a good start on Tuesday, with the benchmark DAX index rising 309.85 points, or 2.60 percent, opening at 11,896.70 points.

The biggest winner among Germany's largest 30 companies at the start of trading was the country's largest airline Lufthansa, increasing strongly by 6.28 percent, followed by carmaker Daimler with 6.04 percent and aircraft engine specialist MTU Aero Engines with 4.80 percent, reports Xinhua.

On Monday, when trading in Germany was suspended due to a national holiday, Lufthansa's supervisory board had voted for a nine-billion-euro (10 billion U.S. dollars) stabilization package by the German government following heavy financial losses due to the COVID-19 pandemic.

"We recommend our shareholders to follow this path, even if it demands substantial contributions to stabilize their company," stated Karl-Ludwig Kley, chairman of the supervisory board of Lufthansa on Monday. A general meeting with shareholders to discuss the state aid package is scheduled for June 25.

Shares of Henkel increased by 0.80 percent. The German consumer goods company showed the smallest gains among companies of the DAX index at the start of trading on Tuesday.

The yield on German ten-year bonds went down 0.032 percentage points to minus 0.425 percent, and the euro was trading almost unchanged at 1.1131 U.S. dollars, decreasing slightly by 0.01 percent on Tuesday morning.