German DAX index drops from 30 to 40 overhaul companies
E-commerce company Airbus, e-commerce company Zalando and meal kit supplier HelloFresh are among 10 companies that will turn the DAX 30 into a DAX 40
Ten companies will join the DAX on Monday as the blue chip stock index receives its biggest facelift in its 33-year history in response to turmoil in Germany’s business world.
When the Frankfurt market opens at 9:00 a.m. (07:00 GMT), new entrants, including European aerospace giant Airbus and e-commerce company Zalando, will turn the DAX 30 into the DAX 40.
The additions to the line also aim to reflect the changing face of the German economy, bringing in tech companies like Zalando and meal kit supplier HelloFresh.
New entrants are making the DAX “more attractive,” said Norbert Kuhn of the German Stock Institute (DAI), which represents stock market participants.
Frankfurt stock operator Deutsche Boerse “was following international standards” with a growing list of companies that better reflected the German business landscape as “the concentration of automotive and chemical companies is reduced,” said Kuhn.
Similarly, Siemens Healthineers joins the parent company Siemens and the Siemens Energy spin-off.
Deutsche Boerse and the DAX suffered a reputational blow last year after digital payments provider Wirecard admitted a â¬ 1.9 billion ($ 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 avoiding another damaging scandal.
As the DAX flagship index rises, the mid-range mDAX will drop from 60 to 50 companies as some of its members are promoted.
wed / mfp / lth