The DAX index surged to a record high, continuing a major bull run that started in March 2020 when it dropped to €8,888. It has now soared by almost 90% and is sitting at its all-time high of €16,800 even as the German economy continues to underperform. 

The DAX index surged on Wednesday after the encouraging results by SAP, the biggest German company. In a statement, the company said that its cloud revenue surged by 20% in 2023 in a sign that corporate spending continued soaring in a difficult year. Its cloud backlog stands at €13.9 billion. 

The company believes that its cloud business will continue doing well this year, helped by its strength in business AI. In all, its total revenue rose to over €31.2 billion, with its cloud revenue hitting €26.9 billion. As a result, SAP stock jumped by 10% on Wednesday.

These results mean that other cloud companies like Salesforce, Microsoft, Adobe, and Amazon will likely report strong numbers next week.

The other top performer in the DAX index was Siemens Energy, one of the most embattled companies in Germany. In a statement, the wind turbine maker said that its order intake rose by 23.9% to €15.38 billion. Revenue jumped by 12.6% while its profit was over €1.8 billion. These results show that the company is doing modestly well after being bailed out by the German government last year.

Several other DAX index companies are doing well. The best performer is Rheinmetall, a defense contractor that has benefited from the ongoing geopolitical issues. Its stock has risen by over 268% in the past three years, 48% in the past 12 months, and 14% this year alone. 

MTU Aero Engines, another defence contractor, has risen by 11% this year, making it the fourth-best performer in Germany. Other companies that are leading the charge are Munich Re, Hannover, and Airbus.

Not all companies in the DAX index are doing well this year. Zalando, the meal delivery company has dropped by 81% in the past three years, 56% in the past 12 months, and 14.9% this year alone. Other top laggards are RWE, Adidas, BASF, and Covestro.

DAX chart by TradingView

In my last DAX forecast, I wrote that it had more gains to run as the bull run accelerates. This view was accurate as the index has jumped to a record high. It has flipped the important resistance point at €16,510, the highest point in July.

The index has also risen above the 50-week and 100-week Exponential Moving Averages (EMA), a positive sign. Therefore, there is a likelihood that it will continue rising, especially after the recent financial results.

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