960410

German shares

close higher

FRANKFURT: Fresh from ending floor trading on Wednesday at a record closing high, the German share market looks poised to move still higher in coming sessions, dealers said.

"We are optimistic the DAX can push higher", a dealer said.

Dealers said the firm dollar provided the market with the fuel to drive upwards.

The DAX index stormed higher to close floor trading up 26.76 points at 2,530.02 but ran out of steam in after-hours dealing. The IBIS DAX index slipped to 2,523.60 points after setting a record of 2,531.24 points during the session.

Dealers said direction still depended on the fate of the dollar, which was hovering close to the key 1.50 marks level.

The stronger dollar has given export oriented companies like car makers and chemical groups a lift, dealers said, adding more gains could be achieved in these sectors.

Daimler Benz AG, which will fill in the blanks at its corporate results news conference on Thursday, on Wednesday traded up 9.50 marks at 816 in afterhours trading.

Rival Volkswagen AG was up 6.65 marks at 533.90 while BMW AG was up 12.70 marks at 816.50.

Meanwhile the German economy, showing a 10.8 percent March unemployment rate, remains weak, fanning hopes the Bundesbank may still cut interest rates one more time in this business cycle.

The central bank next meets on April 18, when it will present its annual results.-Reuter