DAX close to historic high. Commerzbank is back in the game

German during today's session DAX index seems to be growing by almost 1,4 percent. until 13:30 EST. Today's increase by more than 200 points means that the index erased most of the losses that appeared on Friday after the US data. Then the DAX's quotations fell by 1,72 percent, which was the worst session since January 19. However, today the index is drawing the biggest increase since February 2, when it gained 2,16 percent. It is only about 5,5 percent away from the historic peak.

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Commerzbank returned to DAX

Today, after 5 years of absence, Commerzbank joined the index of the largest companies listed in Germany. The bank's share price is up more than 5%, its biggest gain since February 16. On February 17, the German stock exchange announced changes in the DAX and STOXX indices.

Commerzbank had a total revenue of EUR 2022 billion in 9,46, which was the best result since 2015.

Earnings per share of the bank amounted to EUR 1,24 last year and EPS is projected to increase steadily in the foreseeable future. It may amount to EUR 2023 in 1,48 and EUR 2024 per share in 1,79.

The average level of the target price for Commerzbank, based on the opinions of 17 analysts, was set in the region of EUR 12,81, and the highest and lowest price within a year are EUR 15,60 and EUR 10,10 per share, respectively. The company has a market capitalization of EUR 13,36 billion and a dividend yield of 1,87%.

The most important companies in DAX

However, the fate of the German index will probably not depend on the behavior of Commerzbank's price, but on companies such as SAP, Siemens or Allianz. They have the highest weight in the DAX index.

For the company SAP the market consensus assumes that in 1Q23 the company will generate EUR 1,6 per share against EUR 1 in the last quarter of 2022. In the whole of 2023 EPS may amount to EUR 5,39 against EUR 4,08 last year.

Siemens, in turn, had EUR 2022 per share in 4,62, and the market consensus assumes an increase to EUR 8,70 in 2023 and to EUR 10,17 in 2024.

In turn, Allianz in 2022 boasted an EPS of EUR 16,26, and in 2023, according to the consensus, it may increase to EUR 24,33 and in 2024 to EUR 26,68. Here the market seems to have the highest expectations, which can also be seen in the target prices for Allianz. The average is €248 with a high of €309 and a low close to the current price of €219 at €215.

It is on these companies that investors' attention may be focused the most when it comes to the possibility of new highs across the index.