2023-12-01 12:24:03
(updated version)
FRANKFURT (dpa-AFX) – The Dax is expected to remain unchanged in December. However, changes are expected in the MDax, the mid-cap index, and in the SDax, the small and mid-cap index. The manufacturer of syringes and ampoules for the pharmaceutical and biotechnology industry Schott Pharma, a newcomer to the stock market, is knocking on the front door.
The next appointment for the announcement of the results of the extraordinary revision of the Dax family of indices by Stoxx Ltd, a subsidiary of Deutsche Borse, is set for Tuesday, December 5, following the close of the American markets. Any changes will come into effect on Monday, December 18.
Although at the end of October, following the collapse of Siemens Energy shares, some investors in the German benchmark index might have thought that the energy technology group was in serious danger of relegation, this was not still seriously the case, even then. Indeed, at the end of the year, the key index is not monitored according to regular criteria as in March and September, but only on an exceptional basis. Thus, Dax members are subject to less strict criteria during the December examination and to stricter criteria for companies likely to go up. In the meantime, the Siemens Energy share price has recovered significantly. Furthermore, Zalando is the lowest value if we refer to the freely tradable stock market value, the central criterion for membership in the index.
On the other hand, two current SDax companies are entering the MDax before Christmas: The real estate specialist Aroundtown and the wafer manufacturer Siltronic are expected to enter the midcap index, according to index experts Luca Thorißen of the investment bank Stifel Europe and Pankaj Gupta of the American bank JPMorgan. On the other hand, ProSiebenSat.1 and the machine and plant manufacturer Dürr are expected to move down the SDax, they both predict.
Apart from this, the chances of integrating SDax are very good for three other companies. Both the newcomer Schott Pharma, the holding company Mutares and the pump and valve manufacturer KSB meet the so-called “Fast Entry” criteria. This is what the stricter rules during extraordinary index checks are called. According to Thorißen, their respective stock market value is currently sufficient for a place in the SDax. According to him, New Work, the parent company of Xing, Secunet, the IT security service provider, and W&W, the financial services provider, should withdraw.
Such changes are especially important for funds that actually replicate indices (physically replicating ETFs). It is then necessary to carry out a rebalancing, which can have an influence on the share price./ck/mis
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