German Stocks Fall to Lowest Since 2006; Hypo Real Estate Drops

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http://www.bloomberg.com/apps/news?pid=20601100&sid=ae8R86VPoR5U&refer=germany

Oct. 6 (Bloomberg) -- German stocks fell the most in eight months, sending the DAX Index to the lowest since July 2006, as the deepening credit crunch forced the country's financial industry to double a credit line for Hypo Real Estate Holding AG and the government to guarantee personal savings accounts.

Hypo Real Estate, the nation's second-biggest commercial- property lender, tumbled 40 percent as the government and the country's banks and insurers agreed on a 50 billion-euro ($68 billion) rescue package after an earlier bailout faltered. Deutsche Postbank AG, the country's biggest consumer lender by customers, declined 5.2 percent and Allianz SE lost 7.9 percent.

The benchmark DAX Index dropped 4.9 percent to 5,511.32 as of 10:58 a.m. in Frankfurt, the steepest intraday slide since Jan. 23, as all 30 stocks in the index except for Volkswagen AG retreated. The HDAX Index of the country's 110 biggest companies slid 5.1 percent to 2,765.36.

``No more meaningful predictions can be made about capital markets,'' Thomas Koerfgen, a managing director at SEB Asset Management in Frankfurt, said in a Bloomberg Television interview. ``We have a crisis of trust.''

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