Daimler Truck, Hannover Rueck to Join German Benchmark Index
(Bloomberg) -- Daimler Truck Holding AG and insurer Hannover Re will be added to Germany's benchmark stock index, bolstering the market's exposure to old-school industries, while Nivea-maker Beiersdorf AG and Siemens Energy AG get kicked out.
Daimler Truck is joining the DAX Index three months after it was spun off from the automaker now called Mercedes-Benz Group AG. While the stock has fallen 20% since its listing, the company's almost 29 billion euros in market value ($32 billion) is still among Germany's biggest listed companies.
Beiersdorf is getting the boot again just four months after it made a comeback into the German benchmark. Shares jumped as much as 5.8% on Monday to the highest since November, after the company reported sales for the full year, however the stock is still down 18% since an intraday peak in August last year.
Siemens Energy's stint in the DAX Index was also short lived as it joined exactly one year ago. Since then the stock has fallen by more than a third on losses at its Spanish wind-turbine unit and lower demand for fossil fuel-powered equipment. Hannover Re is up about 4% in the same period.
The changes to the DAX Index go into effect March 21, index provider Qontigo said in a statement Thursday.
Since September the benchmark now includes the 40 largest German companies by market value, up from 30 previously, that meet new minimum quality and profitability requirements.Â
The changes will prompt trades by money managers who track the index. Bloomberg Intelligence estimates that exchange-traded funds with about $14 billion in assets will have to shift their investments.
©2022 Bloomberg L.P.
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