More than 30 years after its start, the Dax is getting a new face. In the future, 40 instead of 30 corporations will represent the German economy in the first German stock exchange league. The Franco-German aircraft manufacturer Airbus and nine other corporations will join the German share index on September 20, as Deutsche Börse announced on Friday evening.
Hellofresh, Qiagen, Symrise and Zalando among the newcomers
With Airbus, the Dax is getting another heavyweight at the level of the automaker Daimler or the insurance giant Allianz. “Airbus welcomed the announcement of the German stock exchangeto expand the German premium index and we are very much looking forward to becoming a member of the Dax40 this month, “commented a spokesman for the aircraft manufacturer.
The following nine companies will soon be added to the DAX list: the chemicals dealer Brenntag, the cooking box supplier Hellofresh, the holding company Porsche, the sporting goods manufacturer Puma, the biotechnology and diagnostics company Qiagen, the pharmaceutical and laboratory supplier Sartorius, the medical technology group Siemens Healthineers, the Flavors and fragrances manufacturer Symrise, the online fashion retailer Zalando.
Better illustration of the German economy
Deutsche Börse decided to enlarge the Dax last November. For a long time, the most important German stock market barometer was dominated by the four sectors chemicals, automotive, energy and financial services. Now the leading index is supposed to represent the German economy in a more representative way.
In return, the Frankfurt store operator has reduced the MDax of the medium-sized stocks from 60 to 50 stocks. Five companies from the SDax small-cap index will move up to the reduced MDax on September 20: Vodafone’s transmission mast subsidiary Vantage Towers, the recycling specialist Befesa, the forklift manufacturer Jungheinrich, the financial services provider Hypoport and Zooplus, an online retailer for pet supplies .
The construction company Hochtief, the antibody specialist Morphosys, the wind turbine manufacturer Nordex, the wind and solar park operator Encavis and the shop pharmacy have to vacate their places in the MDax.
Stable profits and timely reports as criteria
The composition of the Dax, which has existed since July 1988, is to be checked twice a year instead of just once a year. In future, Deutsche Börse only wants to include profitable companies in the Dax. If you want to become a member, you must have been profitable at least on the basis of earnings before interest, taxes, depreciation and amortization (Ebitda) in the previous two financial years. Bankruptcy candidates and corporations who fail to comply with their duty to publish interim reports on time are said to have lost nothing in the first German stock market league.
By tightening the rules for the Dax family, the exchange is reacting to the Wirecard accounting scandal. The payment service provider was able to stay in the Dax for months, despite billions in air bookings that were exposed in the summer of 2020, because the previous rules did not allow it to be expelled from the leading index quickly. There was also criticism that the food supplier Delivery Hero was promoted to the Dax for Wirecard and thus a company that has never made any money in day-to-day business since it was founded in 2011.
Hoped for more public awareness and location promotion
The Dax-climbers are hoping for a tailwind from the inclusion in the first German stock exchange league. “The inclusion of Siemens Healthineers in the Dax will further increase our visibility and underline the relevance of the health industry,” said the CEO of Siemens Healthineers AG, Bernd Montag. The CEO of Porsche Automobil Holding SE, Hans Dieter Pötsch, was also convinced that his promotion to the Dax would further increase the public’s awareness of the company.
The Berlin Senator for Economic Affairs Ramona Pop (Greens) said she was pleased that the capital is now home to two new DAX companies: “The rise of Zalando and Hellofresh to the DAX is an important day and a turning point for Berlin. Just a few years ago, people wondered whether how DAX companies can be lured to Berlin. Today, Berlin start-ups are becoming DAX corporations and significantly younger than the leading index. “
(tiw)
