Click to play videoBerlin: Many traders in Frankfurt couldn't believe what they were seeing on the DAX ticker.
Motor giant Volkswagen (VW) shares traded at around 1000 euros a piece, briefly making Germany's largest car maker the most valuable company in the world.
It's an unprecedented rally. VW shares more than doubling in only two days and that has many traders very worried.
Concord Effekten’s Joachim Llambi says, “This reminds of the tech bubble eight years ago. It can't be good for any DAX company and it can't be good for the German index as a whole."
It isn't good for the pocket books of other traders. Many had speculated on VW stock falling short sellers, especially hedge funds, reportedly lost billions of dollars when shares surged instead.
ICS Investment’s Dirk Mueller says, “It is crazy that failed speculation on a single stock could put the entire market into disarray.”
VW shares almost single handedly drove the DAX's massive gains.
Many are calling on the Frankfurt stock exchange to take VW off the index completely.
The stock exchange's management says it has no plans to do so.
VW shares rocketed after sports car maker Porsche announced it now controls almost 75 per cent of Volkswagen stock.
Porsche has long been looking to take over VW but analysts say the surge in Volkswagen's market value could have a dangerous side effect.
BGC Partners Howard Wheeldon says, “For investors I don't think there's much opportunity from here. I certainly wouldn't buy this stock for the very simple reason it's got nowhere else to go but actually down.
Germany's financial regulator says it is looking closely at the spike, but has not launched a formal investigation into possible irregularities.
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