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German DAX sets life high as techs and telecoms buoy

FRANKFURT: Demand for telecoms and technology stocks amid a flood of sector news boosted Germany's benchmark DAX 30 index to a new record high on Thursday but declining car and bank stocks capped the market' gains.

By 1130 GMT the DAX was 0.8 percent stronger at 7,762 points with business software maker SAP AG rising almost six percent to 905 euros after it announced at the CeBIT technology fair it was setting up a new Internet applications company.

"Telecoms and technology stocks are rising further and further. At the moment they are intrinsically worth having," one trader said.

The technology-rich Neuer Markt surged to a record high, climbing 1.7 percent to 7,567.7 points.

DAX heavyweight Deutsche Telekom AG climbed more than five percent to 92 euros, leading the day's volumes.

It announced earlier that it had entered a strategic partnership with Cisco Systems Co to expand its phone network and plans to spend more than one billion marks in broadening its Internet network capacity.

Shares in German industrial and technology group Siemens AG hit an all-time high after it gave an optimistic outlook for the current business year.

Siemens shares were one percent stronger at 192.37 euros after it predicted double-digit growth in sales and orders in its 1999/2000 fiscal year and said earnings will outpace those gains.

On the losing side, shares in German utility RWE fell more than five percent after reporting a decline in first half net profit and forecasting lower operating profit for the full-year.-Reuters