FRANKFURT (dpa-AFX) - The outlook for 2024 drove RWE investors into flight on Friday. The shares recently recorded a drop of 5.6 percent to 34.58 euros, making them the weakest stock in the slightly higher DAX and dropping to their lowest level since October.

When the preliminary figures were announced in an ad hoc release, the shares initially rose somewhat, as the utility had exceeded its own profit forecasts for 2023. However, a wave of selling then set in after the contents of a more detailed press release with a cautious outlook for 2024 made the rounds on the market.

While the renewable energy business and energy trading drove RWE even more strongly than expected in 2023, 2024 is likely to be less positive. Against the backdrop of the significant drop in energy prices in recent weeks, the Group expects a lower result this year, which is at the lower end of the earnings corridor that RWE presented at its Capital Markets Day on November 28, 2023.

Analyst Alexander Wheeler from the Canadian bank RBC spoke of an overall strong performance last year. However, this was dampened by the cautious forecast for the new year. This is not exactly helpful, commented analyst Ahmed Farman from investment house Jefferies. However, the weak share price performance since the beginning of the year implies that the lower energy prices are probably already partly priced in.

Nevertheless, the most recent slump in shares continued on Friday. Since reaching their highest price since May in December, they have already lost a good 22% of their value. In the still young stock market year 2024, the loss amounts to 16 percent. This makes RWE the worst-performing DAX stock./ajx/tih/mis