German stocks slide after US bail-out setback

September 30th, 2008 - 5:13 pm ICT by IANS  

Frankfurt, Sep 30 (DPA) German stocks eased Tuesday after the US Congress rejected the massive $700-billion bail-out plans.The slide on the Frankfurt Stock Exchange was more moderate that in some other markets, with the bellwether DAX index falling 2 percent from Monday’s close before settling at 5,761, down 0.8 percent.

Bank stocks remained weak, a day after a German mortgage lender, Hypo Real Estate, won a financial lifeline from other banks and the German government.

It was the first German company to need help in the current crisis.

Market sources told DPA that the key Hypo Real Estate investor, the JC Flowers group, would retain its 24.9-percent stake. JC Flowers paid 22.50 euros per share to buy in earlier this year.

Hypo Real Estate stock rallied slightly to 4.28 euros, an overnight gain of 0.8 percent.

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