Frankfurt stock exchange falls 0.98% on tech profit-taking

The Frankfurt Stock Exchange experienced a notable downturn on Tuesday, with the DAX 40 index closing 0.98% lower at 24,893.58 points. This decline was primarily attributed to a wave of profit-taking in technology stocks, a trend that originated in Asian markets and extended to Wall Street.

Companies associated with artificial intelligence (AI) were particularly affected, with some experiencing such significant sell-offs that trading was halted in South Korea. In Frankfurt, firms involved in data center construction recorded substantial losses. Semiconductor manufacturer Infineon saw its shares drop by 6.3%, construction company Hochtief lost 4.3%, and Siemens Energy, the parent company of Gamesa, fell by 3.9%.

Other notable movements included a 2.9% decrease in shares of real estate company Vonovia, following its issuance of convertible debt. In contrast, SAP, a software specialist for businesses, saw a modest gain of 1.7%. Renewable energy firm RWE's stock rose by 0.1% after it expanded its capital to increase its stake in electricity grid operator Amprion to 55%.