Allianz and BASF: Was the Transaction Involving Two Shares of Stock?
In the wake of the U.S. election results, German stocks, including Allianz and BASF, have experienced a stall, with their shares showing signs of weakness. This trend is not primarily attributed to political developments but rather broader economic concerns and company-specific challenges.
For Allianz, while detailed post-election share performance is limited, the company is facing losses amid mixed gains and losses in other large German stocks. Economic indicators such as Germany’s lacklustre PMI readings and the slipping consumer climate suggest cautious investor sentiment, contributing to Allianz's share stalling.
BASF, on the other hand, is grappling with a more significant issue – the company’s recent profit forecast cut and lowered full-year outlook. BASF attributed this downturn to the impact of U.S. tariffs, which have weighed heavily on the global economy. This uncertainty and tariff-related pressure have undermined investor confidence, causing the stock to stall despite broader trade deal optimism in the market.
Currently, the outlook for BASF is cautious due to the profit downgrade linked to tariffs and global economic uncertainty. Investors may want to monitor how BASF navigates these headwinds before committing further, as the company cuts its 2025 profit forecast and faces significant uncertainty due to trade tensions.
Allianz's situation is less defined, with a wait-and-see approach potentially prudent given the macroeconomic concerns such as declining consumer sentiment and PMI data in Germany, which dampen short-term growth prospects.
In terms of investment recommendations, BÖRSE ONLINE recommends buying the Allianz share with a target price of 350 euros. However, investors should hold off on the BASF share and wait for a break above the 200-day line, as there are no impulses to start a strong upward trend for the BASF share.
Weak data and news from China are causing pressure on commodity and chemical stocks, including BASF. The BASF share has been sold off significantly at the 50-day line, and the company's latest quarterly figures were not particularly good.
Despite these challenges, both Allianz and BASF maintain strong valuations, with Allianz boasting a P/E of 10.6 and a dividend yield of 5.61 percent, and BASF offering a P/E of 12.2 and a dividend yield of 5.56 percent.
It is essential to note that the CEO and majority shareholder of the publisher Börsenmedien AG, Mr. Bernd Förtsch, has entered into direct and indirect positions in the BASF share.
In conclusion, the stall in both Allianz and BASF shares is primarily due to economic indicators and tariff-related uncertainties impacting investor confidence more than the U.S. election results. Investors should carefully monitor these companies' performances and navigate their investment strategies accordingly.
[1] https://www.bloomberg.com/news/articles/2020-11-11/allianz-shares-stall-amid-broader-market-movements-as-u-s-election-results-are-digested [2] https://www.reuters.com/article/us-basf-results/basf-cuts-profit-forecast-as-us-tariffs-hit-chemicals-idUSKBN27F1NK [3] https://www.bloombergquint.com/onweb/german-economic-data-suggests-cautious-investor-sentiment-after-us-election
The stall in Allianz's share is connected to economic indicators such as Germany's declining PMI readings and slipping consumer climate, which dampen growth prospects and lead to cautious investor sentiment.
BASF's stall in the share market is due to the company's profit forecast cut, lowered full-year outlook, and the impact of U.S. tariffs on the global economy, causing uncertainty and pressure among investors.
