BASF: Positive surprise
BASF's share price has recently performed strongly. The shares of the world's largest chemical producer broke through a stubborn resistance zone. Since then, the price has continued to rise. From a purely technical perspective, the next target would be the year-to-date high of €55.06. There is also now some slight tailwind from the economy.
Despite higher US tariffs, sentiment in the German economy has improved again. As the Ifo research institute announced today, the Ifo business climate index rose by 0.4 points to 89.0 points in August. Economists had expected an increase in Germany's most important economic indicator, but had expected an average of 88.8 points. While companies assessed the current situation somewhat more negatively, their assessment of future business prospects surprisingly improved.
With the increase in August, the Ifo Business Climate Index rose for the sixth consecutive month, reaching its highest level since April 2024. Nevertheless, Ifo President Clemens Fuest remains cautious about future economic developments. "The recovery of the German economy remains weak," he commented on the results of the survey of approximately 9,000 companies.
Meanwhile, the state-owned development bank KfW sees the long crisis in the German economy coming to an end soon. It expects slight growth for the current year – partly because companies have handled the trade dispute with the US under President Donald Trump better than expected.
For 2025, KfW Chief Economist Dirk Schumacher now expects slight economic growth of 0.2 percent instead of stagnation. For the coming year, KfW Research then anticipates price-adjusted economic growth of 1.5 percent—0.5 percentage points higher than previously expected.
The German economy will only grow slightly in the current quarter, but then the upward momentum should gradually increase. "The tailwind for the German economy should prevail toward the end of the year," Schumacher said. "An initial economic boost from the federal government's investment offensive is expected as early as the fourth quarter."
The market environment for BASF is gradually brightening further. Furthermore, from a technical perspective, the green light is currently back on. Anyone holding this strong dividend gem, which is still attractively valued by historical standards, should stick with it. The stop loss should be adjusted to €36.00.
Reference to conflicts of interest
The board member and majority shareholder of the publisher Börsenmedien AG, Mr. Bernd Förtsch, has directly and indirectly entered into positions in the following financial instruments or derivatives related to them mentioned in the publication, which may benefit from any price developments resulting from the publication: BASF.
Contains material from dpa-AFX
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