Porsche Advances into the German Stock Index (DAX)
Let's Talk DAX: Who's In, Who's Out?
Are you ready to ride the stock market waves? Porsche is set to join the DAX before the year ends, while sports apparel company Puma seems to be on the chopping block.
According to investment expert Tom Koula from Stifel Europe, Porsche is a definite addition to the German benchmark index, DAX. Despite the fact that most Porsche shares are owned by Volkswagen and Porsche Holding, both DAX members, the free-float market value of Porsche stands around 15 billion euros, making it a strong 'Fast Entry'. With its current ranking of 22nd, it's just a hop, skip, and a jump away from the required 33rd position.
Porsche made its stock exchange debut at the end of September, and since then, it's been cruising at around 100 euros per share, delivering a 20% market value increase since its initial public offering (IPO).
Siemens Energy, a DAX stalwart, might have to clear the way for Porsche. However, it's also among the candidates for removal. Joining them in the hot seat is online fashion retailer Zalando. Koula flags Puma, the smallest DAX member, as the most vulnerable at the moment. Although Puma's share price has suffered due to Adidas' profit warnings, the company's financials have held steady.
Other potential replacements include Commerzbank, Rheinmetall, and Delivery Hero, but all depends on Linde's shareholders' meeting vote to switch the home exchange to the U.S.
If you want to place your bets, tune into the stock market game "Depot Champ" tonight at depotchamp.de/livestream starting at 7 pm.
Remember, investments always carry risks. Here's some background on the DAX inclusion criteria:
- Market Capitalization: Company must be among the largest and most liquid stocks in the German market.
- Revenues and Financial Health: Finances, revenue growth, and profitability are key factors.
- Free Float Market Capitalization: Only the freely tradable shares are considered.
- Trading Volume and Liquidity: Companies must have a significant trading volume to ensure liquidity.
- Headquarters and Listing: Company must be headquartered in Germany and listed on Xetra exchange or Frankfurt Stock Exchange’s Prime Standard segment.
Companies that no longer meet these criteria can face removal from the index.
Beware, these aren't hard and fast rules—market conditions, financial struggles, and other factors can shake things up in the DAX landscape. Happy trading!
Porsche AG (WKN: PAG911)Note on conflicts of interest: The CEO and majority shareholder of the publisher Börsenmedien AG, Mr. Bernd Förtsch, and the editor-in-chief of this publication, Mr. Frank Pöpsel, have directly and indirectly taken positions in the following financial instruments or related derivatives that could benefit from the price development resulting from the publication: Porsche, Volkswagen Vz.
- The renowned automobile manufacturer, Porsche, is likely to join the DAX index before the end of the year, per investment expert Tom Koula from Stifel Europe.
- Since its initial public offering (IPO) at the end of September, Porsche has been standing at around 100 euros per share, delivering a 20% market value increase.
- Online fashion retailer Zalando, Siemens Energy, and sports apparel company Puma are among the candidates for removal from the DAX due to potential replacements like Commerzbank, Rheinmetall, and Delivery Hero.
- According to the DAX inclusion criteria, Porsche qualifies with its significant market capitalization, revenues, financial health, free float market capitalization, trading volume, liquidity, listing on the Xetra exchange, and headquarters in Germany.
