FRANKFURT (dpa-AFX) - The sharp decline in oil and gas prices following the ceasefire in the Iran conflict weighed heavily on bioethanol and biofuel producers on Wednesday. Verbio shares plummeted by over 13 percent, making them the biggest laggard among German small caps on the SDax. Südzucker shed more than 4 percent.
Both stocks had recently benefited from the war-driven surge in oil and gas prices, which had shifted the spotlight toward alternative fuels. Analysts pointed to rising ethanol prices as a key driver. Südzucker also found support in a robust recovery of sugar prices. Its subsidiary, Cropenergies, is a major producer of bioethanol, much like Verbio.
Since the outbreak of the conflict in the Middle East, Verbio shares had gained over 70 percent at their peak, reaching a three-year high. Südzucker shares had surged by up to 37 percent over six trading days at the end of March, further propelled by a positive research note from Barclays Bank./bek/jha/
