Monopoly extension could boost Deutsche Post shares
Shares in Deutsche Post, the German post office operator, only reacted slightly on Friday to news that Post’s monopoly on letter deliveries has been extended by the German government. The shares increased by 0.26 per cent to 23.58 euros in a weak market. The shares reached a high of 24.17 euros on 5 February, after hitting a low of 21.51 euros in November.
However, analysts believe the shares have potential as the company is hotly tipped to be listed on the Dax 30 index. Analysts expect funds to buy into Deutsche Post for this reason, and the extension of the monopoly on letters will also be attractive for private investors because it means Post is guaranteed stable profits.
Abstracted from Die Welt in German FT McCarthy – Copyright 2001 Financial Times Information.
Source: World Reporter (Trade Mark).
