The DAX30, a Germany’s flagship index, representing 30 of the country’s largest companies by market capitalization is set to become the DAX 40, incorporating ten of the largest companies from Germany’s MDAX listing. As was announced by the Deutsche Boerse last year the DAX 30 is changing to the DAX 40 in order to increase the quality of the DAX indices, provide a more comprehensive picture of Germany’s largest businesses, and align the DAX indices with international standards. All changes would be affective since September 20.
The DAX40 index would represent largest German companies, covering 80% of overall market cap. While previously the DAX 30 considered stock exchange turnover for its rankings, now index members will be considered for liquidity levels instead.
Major candidates, considered to be on the new index list are: Beiersdorf, Airbus, Zalando, Symrise, Porsche SE, Siemens Healthineers, Sartorius, Brenntag, Hellofresh and Qiagen.
The criteria for companies that may become candidates to be in the list are changing as follows:
1. Prove their EBITDA profitability over their two most recent annual financial statements
2. Candidates must have published audited quarter and annual financial statements
3. Companies must comply with the recommendations of the German Corporate Governance Code
4. Minimal free float above 10%
5. Have a listing at Frankfurt Stock Exchange before withdrawal of the requirements to be in the list of Prime Standard sector
6. Legal or operating office in Germany
7. Observation of minimal liquidity requirements
The revision of the DAX40 index components would be revised twice a year while the DAX30 index was revised every quarter.
Market players consider the DAX index as a major stock indicator for the whole Europe as Germany dominates the European economy. Companies that would be on the DAX40 list would certainly attract investors’ attention. Fans of index related strategies are aware that following the market you would receive diversified portfolio of high liquidity with shares of the companies from different economy sector, so, the “new ten” is worth to be considered to be on your investment list in the future.
The DAX30 index last week lost 0.25% following lateral dynamics for the past three weeks. Nevertheless, the index is at its all-time highs.
If we consider a support line starting at lows of March 2020 and the low of June 2021 this line crosses the 15700 mark. If we would have a closing below this level on Monday we would have a break through the upward trend and may bet on the downside correction development with the nearest target at 14800-15060 points, a lows of May-June of 2021.
Chances for a correction are high and may even increase as we getting closer to the election in Bundestag on September 26. So far, no party has a clear advantage, according to the polls. This week investors should pay attention to the upcoming revised Eurozone GDP data for the Q2 2021 that is expected to be published on Tuesday. The forecast is at 2% quarter-on-quarter and 13.6% year-on-year.
The European central bank meeting this Thursday should be definitely on the watch list despite the forecast that the ECB would leave its monetary policy unchanged as the ECB meeting would be interesting to deliver some expectation on a possible tapering of European countries sovereign bonds buying program (PEPP) in Q4 2021.
EU countries are actively debating the phase out of the stimulus measures that were designed as a relief measures during the pandemic while the inflation in Eurozone jumps above 3%.
The DAX40 index would represent largest German companies, covering 80% of overall market cap. While previously the DAX 30 considered stock exchange turnover for its rankings, now index members will be considered for liquidity levels instead.
Major candidates, considered to be on the new index list are: Beiersdorf, Airbus, Zalando, Symrise, Porsche SE, Siemens Healthineers, Sartorius, Brenntag, Hellofresh and Qiagen.
The criteria for companies that may become candidates to be in the list are changing as follows:
1. Prove their EBITDA profitability over their two most recent annual financial statements
2. Candidates must have published audited quarter and annual financial statements
3. Companies must comply with the recommendations of the German Corporate Governance Code
4. Minimal free float above 10%
5. Have a listing at Frankfurt Stock Exchange before withdrawal of the requirements to be in the list of Prime Standard sector
6. Legal or operating office in Germany
7. Observation of minimal liquidity requirements
The revision of the DAX40 index components would be revised twice a year while the DAX30 index was revised every quarter.
Market players consider the DAX index as a major stock indicator for the whole Europe as Germany dominates the European economy. Companies that would be on the DAX40 list would certainly attract investors’ attention. Fans of index related strategies are aware that following the market you would receive diversified portfolio of high liquidity with shares of the companies from different economy sector, so, the “new ten” is worth to be considered to be on your investment list in the future.
The DAX30 index last week lost 0.25% following lateral dynamics for the past three weeks. Nevertheless, the index is at its all-time highs.
If we consider a support line starting at lows of March 2020 and the low of June 2021 this line crosses the 15700 mark. If we would have a closing below this level on Monday we would have a break through the upward trend and may bet on the downside correction development with the nearest target at 14800-15060 points, a lows of May-June of 2021.
Chances for a correction are high and may even increase as we getting closer to the election in Bundestag on September 26. So far, no party has a clear advantage, according to the polls. This week investors should pay attention to the upcoming revised Eurozone GDP data for the Q2 2021 that is expected to be published on Tuesday. The forecast is at 2% quarter-on-quarter and 13.6% year-on-year.
The European central bank meeting this Thursday should be definitely on the watch list despite the forecast that the ECB would leave its monetary policy unchanged as the ECB meeting would be interesting to deliver some expectation on a possible tapering of European countries sovereign bonds buying program (PEPP) in Q4 2021.
EU countries are actively debating the phase out of the stimulus measures that were designed as a relief measures during the pandemic while the inflation in Eurozone jumps above 3%.
