Deutsche Börse reviews stock indices four times a year. This time around MDAX, SDAX and TecDAX have changed – while everything remains the same in the top stock market leagues.
About a month after being kicked out, biotech company Evotec will return to MDAX for mid-sized German companies. It has been listed there since September 2018. But in May, stock exchange operator Deutsche Börse unexpectedly dropped the stock from the index, which has risen 40% since the start of the year.
Evotec did not submit its audited annual report by the end of April as required. A cyber attack is said to have prevented the mandatory appointment. In the future, the company will also be included in the TecDAX technology selection index, and Linux software specialist Suse will be eliminated from it.
Evotec, Krones, Software AG and Shop Apotheke enter MDAX
In addition, Deutsche Börse added the shares of bottler manufacturers Krones, Software AG and Shop Apotheke Europe to the mid-cap MDAX. As of June 19, real estate group Aroundtown, telecom provider United Internet, wafer maker Siltronic and US telecom provider Adtran had to step aside, as the stock exchange operator announced after the market closed yesterday. As expected, there will be no change in the Frankfurt leading index DAX.
Four MDAX droppers now end up in the small-cap index SDAX, from which real estate group Dic Asset exited. The pundits have largely anticipated these changes, but lately pundits no longer expect Siltronic to be relegated to SDAX – nor do they expect Shop Apotheke Europe to be promoted. When Krones and United Internet traded, the match was considered very close.
Promotion opportunities Lufthansa September
The next DAX review should take place in September: Lufthansa may then return to the top stock market alliance. The airline already meets one criterion: Its operating business has been profitable for two consecutive years, its actual business purpose. Lufthansa actually reported 2021 operating figures in the red, but corrected the 2021 figures in its 2022 annual report. It now reports operating profit.
However, the market capitalization of free float, the value of all non-major shareholder holdings, is not yet sufficient for a pitch. Here, the company must be ranked 33rd on the reporting date. Lufthansa is currently ranked 35th. Three years ago, Lufthansa had to switch to MDAX because it no longer met the standard. After the corona pandemic, stocks and market capitalization plummeted, and companies lost money. Lufthansa is a founding member of DAX.
The beneficiary of Lufthansa’s downgrade is Deutsche Welle. The guest appearance lasted just over a year; the real estate share landed on SDAX. If the revival is successful, Lufthansa would become the third founding member to return, after Commerzbank and Continental.
Changes Important to ETFs and Funds
Index changes are especially important for funds that actually replicate the index (physically replicating ETFs). It must then be reallocated accordingly, which can have an impact on the share price.