P.M. BRIEFING : Opening of East German Border Puts Spark in Frankfurt Market
The West German stock market surged today in an enthusiastic reaction to the historic opening of East Germany’s borders.
The key DAX index of 30 leading West German shares jumped 22.50 points, or 1.5%, to 1,485.4 in early trading.
The Frankfurt bourse, staging what dealers termed an “East Germany rally,” was pumped up by talk that the influx of East Germans will boost consumption and construction.
Dealers said construction shares were among the immediate gainers as a further flow of East Germans into West Germany would prompt significant new construction orders. Dealers said the East German exodus would also provide benefits to West German building suppliers, consumer goods and auto makers.
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