The Dax, the leading stock index in Germany that monitors the performance of German blue chips traded on the Frankfurt Stock Exchange, has dressed again, rising from 30 to 40 stocks. “The Dax stock index, Germany’s benchmark, is now receiving its largest revision ever, expanding from 30 to 40 stocks. This adds some welcome diversification while maintaining the old-school cyclical character of the index,” he comments. Ben Laidler, eToro’s global market strategist.
“Dax’s new stocks, such as online leaders Zalando and HelloFresh, and health technologies from Siemens Healthineers and Qiagen, add welcome sector diversity. But the DAX remains, as mentioned, cyclical and focused on chemicals, cars and industrials “, says the expert, indicating that Symrise, Brenntag and Porsche join this 40% cyclical weighting. Other changes include a profitability requirement that will exclude high-growth but loss-making stocks, such as Wirecard, but also German mRNA pioneers BioNTech and CureVac, who have chosen to go public elsewhere on the Nasdaq. Changes in the Dax index can be a bit out of date, the expert concludes, with many hoping for more US-style technology exposure. However, we think it represents an asset in today’s cyclical GDP rebound and supports our positive view of the German market. Valuations are attractive and the upturn in growth should extend further. “