Capital Market and Price Performance of the Salzgitter Share
Salzgitter AG share price performance vs the European Steel Index, MDAX and DAX
In the first half-year of 2013, expectations of an impending stabilization of Europe's economic situation, in conjunction with the dearth of investment opportunities resulting from the low interest rate level, translated into a generally upbeat stock market environment. After a hesitant start, share prices rose initially in March until the US central bank's announcement of its intention to raise the key rates at the beginning of the second quarter and news of Cyprus' possible insolvency triggered a wave of profit taking. This was followed by another uptrend. The DAX reached a record high of 8,557 points on May 22 in response to the Federal Reserve indicating the possibility of prolonging measures to stimulate the economy. Towards the end of the reporting period, the index consolidated at a high level. The performance of the DAX stood at 5 % at the end of the first half-year, while the MDAX climbed by 15 %.
The extremely challenging market environment in Europe, compounded by persistent political and macroeconomic uncertainty, resulted in the negative performance of steel equities that ran counter to the overall market dynamics. Accordingly, starting from a closing price of € 39.43 at the end of 2012, the Salzgitter share had risen to its highest level in the reporting period of € 41.56 as early as January 3. Thereafter, on the back of at best modest prospects for the European steel market, a pronounced downtrend set in that, apart from short-lived counter movements in February and May, generally lasted throughout the first half year of 2013. Most European competitors reported similar share price performances. All in all, the performance of the Salzgitter share came in at –36 % in the first six months of 2013 and, taking account of a € 0.25 dividend markdown following the Annual General Meeting of Shareholders on May 23, 2013, at –35 %.
In current analyst coverage conducted by 19 banks, our share has been assessed with the following recommendations (as per June 30, 2013): 5 buy/outperform, 9 hold/market perform, 5 sell/underperform.
The average daily turnover of the Salzgitter share on German stock exchanges came to just under 439,000 units a day as per June 30, 2013. It rose significantly in the second quarter and, at around 512,000 units, reached its highest average since the end of 2010. All told, Salzgitter AG took sixth place measured by turnover and held 36th place in terms of free float market capitalization in the MDAX ranking of Deutsche Börse AG as of June 28, 2013.
As part of our capital market communication, we made presentations at investor conferences in Baden- Baden, Frankfurt, Hamburg, Nice and New York, as well as holding a road show in Luxembourg. Investors and analysts took advantage of the offer of visiting our plants in Salzgitter as well as in Mülheim an der Ruhr and of informing themselves about our company in discussions with representatives of the Group. At the end of March, we presented the results of the financial year 2012 at well-attended analysts' conferences in Frankfurt and London and engaged in intensive dialog with the capital market. The information events and site visits arranged by the "Freundeskreis der Aktionäre der Salzgitter AG" (circle of friends of Salzgitter AG shareholders) met with keen interest again on the part of our private investors.
Information for investors
1) All data relate on prices in XETRA trading
2) Calculated on the basis of the respective closing price at the end of the period multiplied by the number of shares outstanding per this date