Frankfurt’s DAX expands index to 40 as Porsche, Puma, Airbus to join blue-chip

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Frankfurt’s DAX expands index to 40 as Porsche, Puma, Airbus to join blue-chip

In what could be contemplated as the biggest reform in 33-year history of Frankfurt’s DAX, the Germany’s blue-chip stock index had decided to expand to 40 companies from a prior 30 as the German luxury carmaker Porsche, sportswear manufacturer Puma alongside the world’s No 1 aircraft maker Airbus SE among others had been set to join the league of scintillating German legends, Germany’s exchange operator Deutsche Boerse had said in a statement on Friday.

If truth is to be spoken, latest dramatic overhaul in Germany’s DAX stock index, which came into being after years of arguments, followed a surprise collapse of German payment processing company Wirecard just two years after inclusion, while several analysts were quoted saying following the announcement that the move had largely been prompted by the Wirecard collapse that had embarrassed the German Government alongside market regulator Deutsche Boerse’s stance as an advocate to a level-playing ground for safe-haven assets.

According to the statement from Deutsche Boerse, the changes would be effective from September 20.

Frankfurt’s DAX to expand to 40 companies

Although, Deutsche Boerse had claimed in a statement in November last year that the expansion stratagem in effect would provide a better scalability for the investors while helping the index to compete better against other global equity indices, a portfolio manager at Startcapital, Manfred Schlumberger was quoted saying followed by the announcement that the move still remained subject to questions on whether the expansion could make the index more lucrative given the volume of future-oriented industries like of techs and communications listed in US stock indices.

Apart from Puma, Airbus and Porsche, rest of the new inclusions would be health-tech company Siemens Healthineers, fragrance maker Symrise, lab equipment manufacturer Sartorius, chemical distributor Brenntag, meal-kit enterprise Hellofresh alongside genetic testing firm Qiagen, Deutsche Boerse added in the statement.