19 August 2005, 15:12  German shares bounce back after recent decline as US futures point higher

Shares rallied in morning trade after their recent downward move, as US stock futures pointed to a higher opening on Wall Street and amid the latest futures and options expiries, dealers said. At 11.52 am, the DAX 30 index was close to today's session high, up 43.03 points or 0.89 pct at 4,894.30, having moved between 4,851.88-4,894.58 so far this session. The MDAX was at 6,721.62, up 28.29 points or 0.42 pct, while the TecDAX was at 581.95, up 2.16 points or 0.37 pct. The DAX futures was at 4,906.00, up 39.50 points or 0.81 pct, while the bund futures was at 123.07, up 0.02. The euro last traded at 1.2173 usd, compared with 1.2136 in early London trade. DaimlerChrysler led large-caps higher, regaining some of the ground lost in the last two sessions, up 0.74 eur or 1.81 pct at 41.62. Peers BMW and Volkswagen were bright features too, rising 0.30 to 37.12 and 0.41 to 43.65 respectively. Linde posted sharp gains too, adding 0.91 to 60.12, amid upbeat comments from Deutsche Bank, which reiterated its 'buy' recommendation and 66 eur price target on the stock in a note on the industrial gases sector. "We continue to see value in the gases sector, driven by the on-going improvements to RoCE (return on capital employed) and growth," Deutsche Bank said in a note to clients. It added that Linde showed the strongest growth among companies in the gas sector and that while its Material Handling segment might remain under long-term pressure, cost-cutting and efficiency improvements should provide support.

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