- European indices in the green before a data-packed week
- DE40 with slight gains after good results
- Hypoport with revenue +22% YoY, return to profitability in H1 2024
- Hannover Re: EBIT +34% YoY in Q2, above analysts' expectations
General market situation:
Indices continue Friday's gains, approaching important resistance levels. The French CAC40 remains close to Friday's price. The German DAX is up 0.1%, approaching an important Fibonacci retracement level, and the Spanish IBEX35 is up 0.2%. The strongest performers are the Italian ITA40 index, up 0.6%, and the Polish WIG20, which is making up for Friday's decline with a rise of over 2%. Hypoport is up over 8% after good results, and DAX component Hannover Rueck is up over 5%, also due to better-than-expected results.
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Volatility currently observed in the broad European market. Source: xStation
Companies included in the DAX index. Source: Bloomberg Finance L.P.
The DAX (DE40) contract continues to rise after a successful Friday session. After breaking through the closing level of the downward gap, the 23.6% Fibonacci retracement at 17988.5 remains as resistance. Breaking it will allow testing first the 50 and then the 100 SMA. At the same time, the support remains at the lowest point of the bearish weekly candle, which is 17811. Breaking it may involve testing the 200 SMA and later the 38.2% Fibonacci retracement. RSI rebounds after touching the oversold level on Monday, MACD slowly starts to show direction. Source: xStation
Company news:
- Rheinmetall (RHM.DE) received a new order to supply tanks and armored vehicles to the Czech Republic as part of a ring exchange process supporting Ukraine. The contract, worth lower hundreds of millions of euros, includes the delivery of 14 Leopard 2A4 tanks and one Buffalo rescue vehicle. Deliveries will start at the end of 2024 and finish in early 2026. In exchange, the Czech Republic will transfer military equipment to Ukraine.
- Hypoport (HYQ.DE) published on Saturday financial results for the first half of 2024. The company reported significant revenue growth and a return to profitability, mainly due to strong growth in the real estate and mortgage platforms segment. Ronald Slabke, CEO of Hypoport SE, emphasized that the initial positive effects of the mortgage market recovery are beginning to be reflected in the company's revenues, and the scalable platform business model and optimized cost structure contributed to the Group's profit growth of almost 10 million euros.
RESULTS FOR THE FIRST HALF OF 2024:
- Revenue: 218.1 million euros, +22% YoY
- EBIT: 7.9 million euros vs. loss a year earlier
- Earnings per share: 0.81 euros vs. loss of 0.32 euros YoY
RESULTS FOR THE SECOND QUARTER OF 2024:
- Revenue: 110.6 million euros
- EBIT: 3.6 million euros
- Hannover Re (HNR.DE) published on Friday financial results for the second quarter of 2024. The company reported net investment income of 511 million euros, significantly exceeding analysts' expectations. Operating profit (EBIT) amounted to 847 million euros, also above market consensus. The company confirmed its forecast for 2024, assuming net profit of at least 2.1 billion euros and reinsurance revenue growth above 5%.
RESULTS FOR THE SECOND QUARTER OF 2024:
- Net investment income: 511 million euros, +8.7% YoY; consensus: 482.2 million euros
- EBIT: 847 million euros, +34% YoY; consensus: 754.6 million euros
- Combined ratio (P&C): 87.6% vs 90.8% YoY; consensus: 90.7%
- Return on equity: 22.4%; consensus: 21%
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
