Germany’s DAX index grows from 30 to 40 firms in revamp

E-commerce company Airbus, e-commerce company Zalando and meal-kit provider HelloFresh are among 10 companies that will turn the DAX 30 into the DAX 40

Ten companies will join the DAX on Monday as the blue-chip stock market index undergoes its biggest facelift in its 33-year history in response to turmoil in the German corporate world.

At the opening of the market in Frankfurt at 9:00 am (0700 GMT), the new entrants, amongst them European aerospace giant Airbus and online shopping company Zalando, will turn the DAX 30 into a DAX 40.

Additions to the line-up are also meant to reflect the changing face of the German economy, bringing in tech companies like Zalando and the meal-kit supplier HelloFresh.

Read Next

The newcomers make the DAX “more attractive”, said Norbert Kuhn from the German Stock Institute (DAI), which represents stock market participants.

Frankfurt stock exchange operator Deutsche Boerse was “following international standards” with a broader and longer list of companies that better reflected the German corporate landscape as the “concentration of automotive and chemical companies is reduced,” Kuhn said.

Likewise, Siemens Healthineers joins parent company Siemens and spin-off Siemens Energy.

Deutsche Boerse and the DAX suffered a reputational blow last year after digital payments provider Wirecard admitted to a 1.9 billion euro ($2.2 billion) hole in its accounts.

New rules to better regulate entry into the DAX will be implemented during the expansion, with the aim of preventing another damaging scandal.

As the flagship DAX index grows, the mid-tier mDAX will shrink from 60 to 50 companies, as some of its members are promoted.


Read Next

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button