Uniper is trying to rebound after 25 bln EUR support from German government

The German federal government has approved an increase in Uniper's (UN01.DE) share capital to €25 billion, prompting a sharp improvement in sentiment since the company recently threatened to go bankrupt if the government did not support the company's financial health.

• Uniper suffered record net losses in the history of the German stock market, amounting to some €40 billion. The company has become a 'major loser' of the war in Ukraine and the NordStream gas pipeline debacle. Due to the extraordinary situation, the company will pursue a court-ordered, 'customary' dispute with Gazprom under Swiss law. Germany's first capital injection of 8 billion euros has already been approved by investors. The company is in the process of being nationalized as part of a state buyout to enable it to survive the energy crisis. Uniper in early December estimated the cost of replacing Russian gas at around €11.6 billion.

Uniper (UN01.DE) shares, M30 interval. The company's shares reacted to the reports with euphoric rises, most of which have now been almost entirely surrendered. As a result, the company's shares are back at levels at €3 per share, just 3% above Friday's closing price. Primary support is provided by the SMA 200 (red line), running at €3 per walo. It is at these levels that the battle between demand and supply is currently underway. Crossing EUR 3 could trigger a strong upward impulse. Source: xStation5