Breaks for car manufacturers
Porsche share is already flying out of the DAX
Almost three years ago, Porsche started promising on the stock exchange, quickly rose to the DAX. After the last weak business figures, the descent is now followed.
New setback for Porsche after recent clear burglaries: The sports car manufacturer descends from the German stock index Dax in the index for medium-sized companies (MDAX). This was announced by the German stock exchange.
The pharmaceutical and laboratory supplier Sartorius also has to go, as the German stock exchange subsidiary ISS Stoxx announced in Zug. The real estate platform operator Scout24 and the plant manufacturer GEA will be climbed into the DAX instead of Porsche and Sartorius. Sartorius will also be represented in the MDAX in the future. The changes will come into force on September 22nd.
Porsche AG went to the stock exchange at the end of September 2022 and celebrated one of the largest stock exchange tours in German economic history as a promising newcomer.
Just a few months later, the still highly profitable company rose into the DAX at the time. The shares started with an issue price of 82.50 euros during the IPO and increased to almost 120 euros in the months after. Finally, the share price was only around 45 euros.
Porsche: burglary and savings program
Almost three years later, the mood at the VW subsidiary deteriorated significantly. The profitability of the former return pearl has melted. The problems of the German auto industry do not stop at Porsche-be it the weakening Chinese market, problems with e-car sales or the customs dispute with the USA. The company recently recorded severe burglaries. Therefore, saving is now the order of the day at the Swabians.
The descent of Porsche is symbolical of the crisis of the German auto industry, which fights with falling profits. This burdens the company’s share prices. The weight of the car industry in the DAX has shrunk significantly within ten years.
Unlike Porsche AG, the Porsche Automobil Holding SE remains in the DAX. With 31.9 percent, the investment company is the largest shareholder of the car manufacturer VW; It is also involved in Porsche AG with about one eighth.
In addition to the car manufacturer, Sartorius also has to leave the DAX. The Göttingen pharmaceutical and laboratory supplier had benefited from a strong demand for its products, for example for the production of vaccines. After that, the company suffered from the warding of the boom, high stocks for customers and a market weakness in China. Sartorius shares have halved within three years.
The first stock market league brings prestige
Changes in the DAX are not unusual. The German stock exchange checks the composition of the German leading index as well as other indices, including the mean value index MDAX. The stock market value of the freely traded stocks is crucial for the ascent and descent of companies.
Which index – Dax or MDAX – a company belongs to has no consequences for its business. However, a listing in the first German stock market league brings prestige and more visibility among international investors. Because the DAX is the figurehead of the German economy.
Descent does not have to be final
Long -term consequences for the share price generally do not have index changes. They are particularly important for index funds (ETFs), which, for example, map the DAX directly and one to one. You then have to switch off and convert accordingly, which can have an impact on the share prices.
A descent from the DAX is not a one -way street, as the example of Commerzbank shows: In 2018 it had to leave the DAX, in 2023 the return to the leading index, which had meanwhile been expanded from 30 to 40 values. The Lufthansa, which had to leave the Dax in the MDAX in the summer of 2020, was always considered a candidate for a return.
Dpa
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Source: Stern
