• HOCHTIEF stock in the maelstrom of globally falling stock markets
• HOCHTIEF stock at EUR 35.74 at close of year
• HOCHTIEF continues to be listed in Dow Jones Sustainability Index
• Proposed dividend of EUR 1.40 per share

Stock market shaped by financial crisis

In 2008, stock markets were hit by the effects of the financial crisis and fears of recession. In the first half of the year, apprehension of a recession in the USA and the sharp rise in oil prices in particular caused prices to fall. In the second half of 2008, the financial crisis spread throughout the entire global financial sector, culminating in various financial institutions declaring bankruptcy or being (partially) nationalized. Following the turbulence on the international financial markets, the German Prime All Share index stooped to an annual low of 1501.95 points on November 21, 2008, down 50.2 percent compared with its value at the end of 2007. The fall in prices was temporarily slowed by the announcement of government assistance for the financial sector and certain other industries, as well as aggressive interest rate cuts by central banks. But market uncertainty was clearly manifest in the high volatility of German listings. The international stock markets showed a similar picture. The value of the US S&P 500 dropped 38.5 percent in the course of the year, the Euro STOXX 50 lost 44.4 percent, and the Australian All Ordinaries 43 percent.

Financial sector companies and companies sensitive to economic trends were hit particularly hard by falling share prices. Moreover, construction industry clients faced diminishing availability of loans and rising costs of financing. The slowdown in growth in emerging economies, which previously acted as growth drivers for the industry, put a strain on the industry's outlook. In light of this, the DJ EURO STOXX Construction & Materials Index, which reflects the share price performance of the biggest companies in the construction industry, tumbled by 48.1 percent.