FRANKFURT (dpa-AFX) - The initial attempt to stabilize Vonovia shares proved to be a flash in the pan on Friday. In an increasingly weak overall market, the share price slid by more than five percent to 18.23 euros in the afternoon. This represented a low since 2014.

The entire sector has been under pressure for some time. Inflation and interest rate hikes by central banks are weighing heavily. As a result, the refinancing of bonds is becoming more expensive. At the same time, the balance sheet values of the real estate portfolios, which have swollen considerably in the years of the zero interest rate policy, have to be reduced. The fact that Vonovia, unlike its competitors, did not completely cancel its dividend when it presented its annual figures did not help in this environment - especially as the dividend also results in an outflow of money.

Analyst Charles Boissier from the Swiss bank UBS also criticized the business outlook for 2023, which now sounds more cautious.

With the current share price losses, Vonovia has lost more than 17 percent of its value so far this year, which is more than any other Dax stock. And the shares were already the weakest stock in the German benchmark index in 2022, with a drop of more than 50 percent./mis/tav/jha/