Shares in the top-of-the-range carmaker BMW fell nearly 10 per cent on the Frankfurt stock exchange on Thursday on a newspaper report that one of its diesel models exceeded EU emission norms.
The AFP reported that as the auto sector continued to reel from revelations that German giant Volkswagen was involved in a massive pollution cheating scandal, BMW shares tumbled 9.7 per cent to an intraday low of €72.05 in late morning trade on a report in the weekly Auto Bild that emissions from one of its diesel models were 11 times higher than EU norms.
Even if there were no signs that BMW had also used sophisticated softwares as Volkswagen to fool pollution tests, the news further destabilised the vital German industry already shaken by the VW bombshell.
By contrast, VW shares shot up 7.9 per cent to hit an intraday high of 120.30 euros, as investors went bargain hunting following the meltdown in the share price earlier this week as the extent of the scandal became apparent.
A two-day rout on Monday and Tuesday had axed 35 per cent – or €25bn – off the company’s market value.
Meanwhile, the AFP reported that European stock markets closed lower Thursday following another volatile day of trading, as a spreading Volkswagen scandal offset positive German data.
Investors were also awaiting an update on the outlook for US interest rates, with the euro up against the dollar ahead of a speech later in the day from Federal Reserve chief Janet Yellen.
London’s benchmark FTSE 100 index ended the session 1.17 per cent down at 5,961.49 points compared to Wednesday’s close.
In the eurozone, Paris’ CAC 40 dropped 1.93 per cent to 4,347.24 points.
Frankfurt’s DAX 30, meantime, shed 1.92 per cent to 9,427.64 points, with scandal-generated pressure that had socked Volkswagen’s stock this week spreading to fellow German car maker BMW, which shed 5.15 per cent on the day.
Europe’s main stock markets had closed higher Wednesday, recovering some of the previous session’s sharp losses.
Source : Punch