Interim Group Management Report
1. Business and market environment
Favourable economic prospects helped to propel the German indices to record highs. In June, the DAX reached the highest level in its history. With growth of more than 21% since the end of the previous year, it is the most successful of the share price barometers in the key industrialised nations. Developments on the other German indices were no less positive, with both the MDAX and the SDAX recording growth of 17%, while the TecDAX technology index rose by just under 24%. By comparison, the DJ STOXX 50, the leading European index, added just 9% to its level at year-end 2006, while the NIKKEI 225 in Japan remained unchanged as against the end of the previous year after adjustment for currency effects. Despite the crisis on the mortgage market and fears of rising interest rates, the U.S. Dow Jones Industrial Average and Nasdaq100 indices recorded growth of 5% and 7% respectively.
In the BRIC countries, the Chinese equity index in Shanghai remains the market-leader, rising by 91% after adjustment for currency effects. Brazil improved by 32% and India recorded growth of 13%, while the RTS equity index in Russia fell by 4% after adjustment for currency effects. Mexico stood out among the emerging economies with growth of 15%, whereas the Hang Seng in Hong Kong increased by just 6% in the first half of the year.
Fewer companies than expected went public in the first half of 2007, with a total of 19 companies placing an issuing volume of around EUR 3.11 billion. The companies making their stock exchange debut included Gerresheimer, which was responsible for the largest IPO in the first six months of the year with an issuing volume of EUR 1.01 billion.
In the first half of 2007, Baader Wertpapierhandelsbank AG accompanied 16 capital measures with a total volume of EUR 140 million. This included five IPOs: ARISTON Real Estate AG, SMT Scharf AG, Blue Cap AG, Deutsche Technologie Beteiligungen AG and STEICO AG, the latter of which was implemented in conjunction with HSBC Trinkaus & Burkhardt AG.
At 30 June 2007, Baader Wertpapierhandelsbank AG managed a total of 156,322 order books, up 83% on the first half of 2006. 11,666 of the order books related to equities, 135,224 to warrants, certificates and ETFs, 8,215 to bonds and profit participation certificates, and 1,217 to investment funds.
Baader Wertpapierhandelsbank AG lost a small proportion of its market share following the introduction of the new rules and regulations on the Frankfurt Stock Exchange; however, the positive market environment means that this has not had a significant impact on its operating results. The redistribution on the Munich Stock Exchange resulted in a substantial improvement in the Bank’s earnings from specialist activities in Munich.
The General Meeting of Baader Wertpapierhandelsbank AG on 26 June 2007 resolved a dividend distribution of EUR 0.25 per share; this amount was distributed in the same month.
Events after the balance sheet date
According to the ad hoc disclosure published on 18 July 2007, Baader Wertpapierhandelsbank AG has increased its interest in Conservative Concept Portfolio Management AG, Bad Homburg, to 55.36%. This increase is intended to underline and, in particular, further intensify the successful cooperation enjoyed to date.