Analysis of BASF share price for trading

Whichever sector of activity you plan to invest in through stock market speculation it is important nonetheless to carefully choose the assets you add to your portfolio or trade online. Therefore, the shares of market leaders in each sector are often to be favoured as they tend to be generally more reliable and beneficial, such as BASF shares that we will examine here in more detail so that you can undertake a complete and reliable analysis of its share price.  

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Trade in BASF shares!
75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Latest news

Sale of HILD Samen from BASF to Graines Voltz

09/03/2020 - 14h26

Discover the details of the ongoing sale of BASF's HILD Samen business to the French group Graines Voltz, as well as the probable profits for each of these companies and the impact of this transaction on the stock market.

Our advice for trading BASF share

Tip number 1

Firstly, concerning the development opportunities open to BASF we particularly note for example its ability to develop new products with a higher investment than before in the area of research. This notably concerns innovations in the GM sector in which this company has heavily invested in recent years. The company could also benefit from the rise in requirements from the Pacific Asia area, a market in which it is already particularly well placed.

Tip number 2

It is entirely possible that certain threats could curtail the development of BASF’s activities, notably the problem with increasingly strict government regulations particularly those relating to ecology which could severely influence the marketing of certain products.

Tip number 3

Of course, the significant and increasing competition between BASF and other companies on this market is also a threat to be taken into consideration as well as the strong economical instability shown by countries targeted by BASF and the considerable variation of requirements.

Tip number 4

Finally, it is not impossible that the BASF Group could again find itself at the heart of an ecological scandal as was the case with the Hannibal chromium spill. This would of course have far reaching significant financial consequences for the group.

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Trade in BASF shares!
75% of retail investor accounts lose money when trading CFDs with this provider.

General presentation of the BASF Company:

The BASF group is the leader of the chemical industry on an international level. Its activity touches various sectors, mainly the manufacturing of functional products but also chemical products, high performance materials, agrochemical products and other minor products. BASF also participates in production exploration for the oil trade and that of natural gas.

Although the majority of turnover generated by this company is in Germany it also boasts a significant presence in Europe, North America and Pacific Asia.

 

Know the competitors to BASF shares:

The BASF group exercises its activities in a highly specific area of the chemicals sector with a predilection for organic chemistry. There are therefore few companies capable of truly rivalling this giant that currently occupies first position worldwide in this sector. Nonetheless, some international companies still hold strong positions and try to compete with this German group. Here we offer you the opportunity to learn about the largest companies worldwide in the chemical sector that offer the strongest competition to BASF; they are ranked by position in terms of size and turnover.   

BASF is of course the leader of this sector and holds first position in the classification.

  • Down Chemical: After BASF we find the American company, Dow Chemical.
  • Shell: Third place is occupied by the Shell Group from the United Kingdom and Netherlands.
  • Bayer: Another German company, this one is in fourth position in the list.
  • Exxon Mobil: This company from the United States is placed sixth position on this list.
  • Other competitors: We then also find other companies such as DuPont, Total, Ineos, Sinopec and Sabic which share the bottom of the list.

 

Strategic alliances implemented by the BASF group:

  • Technip: In 2011 Technip entered into a long term partnership with BASF which enabled the latter to benefit from substantial engineering resources for its projects, notably in Europe but also in other areas. This collaborative agreement covered a wide range of services from initial studies to the implementation of projects.
  • Bouygues Construction: At the time of the Campus Innovation organised by Bouygues Construction, on Tuesday 7 October 2014, one of the global leaders in construction and the world leader in the chemicals sector, BASF, signed a long term co-operation agreement. 
  • R-M and Glasurit: In 2015, R-M and Glasurit, two brands that specialise in high quality paints for the BASF group, became partners of Tesla to reproduce colours for vehicles after repair work.

 

Introduction and rate quotations for BASF shares:

BASF boasts a continually increasing turnover over the last few years and its shares are quoted on the Xetra stock market in Germany and integrated in the calculation of the Eurostoxx 50 stock market index. Its dividends also appear highly attractive for the coming years and a technical analysis shows strong opportunities for investors over the short term due to major volatility and clear movements.

 

Stock market data

To conclude this article here is some general information on the subject of BASF shares and their price on the stock market that will enable you to better understand its movements and growth.

  • In 2017 the BASF Company boasted a stock market capital of around 84,481.67 million Euros.
  • The number of shares issued by the BASF Company that are currently in circulation on the market is around 918,478,760.
  • The BASF share price is currently quoted on the Prime Standard market of the Deutsche Boerse AG in Germany.
  • The BASF group is also included in the national German stock market index, the DAX 30.
  • Major shareholders in the BASF Company are the BlackRock investment fund with 6.40% and a German company in the same sector, Norges Bank, with 3.32%.

 

Economic history

To understand how the price of BASF shares can be influenced by fundamental data here are some significant dates of recent major financial and economical events for this company.

  • In 2008, BASF temporarily stopped the production of chemical products at 80 locations.
  • In 2009, BASF also stopped its activities at a number of synthesised ammoniac sites. In the same year BASF purchased a majority shareholding in the company Ciba Specialty Chemicals which was integrated into the group. 
  • In 2010 the BASF subsidiary, Plant Science, obtained the EU authorisation to culture a transgenic variety of potato that they created.
  • In 2012 BASF sold its chemical activities in the alimentary sector.
  • In 2015, the group sold part of its activities in the manufacturing of ingredients for the pharmaceutical industry.
  • In 2016 BASF sold its paint activities to Akzo Nobel then announced the purchase of Chemetall for 3.2 billion dollars.

 

The advantages and strong points of the BASF share price as a stock market asset:

Investors taking position on BASF shares with a long term strategy start with a full analysis of the strengths and weaknesses of this company. This is what we shall do now beginning with a detailed summary of this group’s strong points.

It should firstly be remembered that BASF is the international leader of companies in the chemicals sector which gives it a strong position with its suppliers and clients. To achieve this dominant position BASF implemented a strategy based on numerous subventions and the creation of a number of co-operatives in more than 80 different countries.

BASF also invests heavily in sustainable agriculture to increase its share of the market whilst offering farmers solutions that truly respond to their requirements. The group also distinguishes itself with certain high quality products such as high performance polymers.

BASF can also count on the strength of its brand and its popularity in global industries. In fact, the group does everything possible to retain this reputable brand image with the public and continues to do so despite new actors in the industrial sector.

 

The disadvantages and weak points of the BASF share price as a stock market asset:

If reading our detailed synopsis of the strong points of the BASF Group has tempted you into immediately taking a buy position on this asset then we would first recommend you allow us to also point out the weaknesses of this company that could negatively influence the rise in its share price. Here therefore is a detailed list of the major weak points of the BASF Company.

Primarily, despite its progress in this matter the BASF group remains highly exposed to the significant costs of manufacturing less polluting products. The current ecological problems are central to the chemical companies worries, particularly concerning agricultural products.

The second weak point of the BASF group relates to the research and development expenses that are less than those of their competitors. This could lose the company part of the market if it allows itself to be left behind by other players that gain larger parts of the market in the industrial chemical sector that relies heavily on innovative products.

As you may have noted the weak points of the BASF Company are far less numerous than its advantages. However, these weaknesses could be significant for shareholders and investors and could therefore negatively influence the price of this asset. It is therefore important to carefully monitor these elements and take them into account in your trading strategies.

Trade online on the BASF share price:

It is possible to invest in the price of BASF shares by trading on the stock markets online. Reputable brokers can offer you this possibility and you can take position on the rise or fall of the BASF share price immediately.

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Trade in BASF shares!
75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.