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Technology Stocks : SAP A.G. -- Ignore unavailable to you. Want to Upgrade?

To: Diver who wrote (2568)	9/17/1998 10:40:00 PM
From: singletree	Read Replies (2) \| Respond to of 3424

German Stocks Review DAX down on disappointing Fed, Latin crisis 09/17/98 11:45 ET Frankfurt--Sep 17--Germany's DAX-30 index today dived 3.9% from Wednesday's close, erasing all the gains it had built up over the past three sessions. Disappointment over US Federal Reserve chairman Alan Greenspan's failure to earmark concerted global interest rate cuts, stock market losses in Latin America and Asia, the weakness of the US dollar against the Deutsche mark and profit warnings by major European companies were behind the fall, dealers said. The DAX ended floor trade down 188.46, or 3.87%, at 4669.51. "The market was hopeful through the past few days that Greenspan would speak in favor of coordinated rate cuts. When this didn't happen and Latin America and Asia tanked, the DAX followed suit," one dealer said. Electronics and electrical engineering giant Siemens were dragged down by a profits warning from French group Alcatel, which fell more than 30% today, after announcing profit on its ordinary operations in 1998 would be below forecasts due to the Asian crisis. Siemens was also hurt by fears it would run into serious problems with its Brazilian semi-conductor business. Siemens ended down 8.80 marks, or 7.9%, at 102.70 marks. Software maker SAP went into free-fall today, losing 10.9% in share value on an announcement by Larry Ellison, Oracle Corp's chief executive, that his company would beat its German competitor as the number one supplier of business process software within five years. SAP was also among those pressured by the weak dollar, dealers said. "It wasn't so much panic-selling, it was more of a buyers' strike," one dealer said, commenting on the broad market. With the end of the third quarter and German federal elections ahead, investors were keeping their books closed in order not to be caught wrong-footed, dealers said. In addition, credible political action in Japan and Russia would be needed to make a lasting contribution to a market recovery, but was currently not in sight, dealers said. "We have a couple of volatile weeks ahead of us. It is still too early to sound the all-clear," one dealer said. The Sep DAX future closed 253.00 points lower at 4627.00, while the dollar was last bid around 1.6845 marks. The Dec Bund future last was down 0.57 at 114.05. -- Rainer Buergin, Bridge News ****************************************************************** IMHO, Ellison should not be able to "Kurlak" us to the tune of 10%+. John