24hoursworld

Stock market: Commerzbank returns to the Dax

Stock market: Commerzbank returns to the Dax

Back in the first German stock exchange league: Almost four and a half years after being relegated from the Dax, Commerzbank is back in the leading index. The Executive Board also sees this as confirmation of its restructuring course.

Commerzbank is first class again: almost four and a half years after being relegated from the Dax, the Frankfurt money house is returning to the first stock exchange league. As of today, Commerzbank is once again one of the 40 members of the German share index. At the start of trading at 9 a.m., CEO Manfred Knof and CFO Bettina Orlopp want to herald the return of the Dax to the Frankfurt Stock Exchange.

The premature return of the Dax founding member was made possible by the withdrawal of the industrial gases manufacturer Linde from the Frankfurt Stock Exchange. “We are back,” said Commerzbank after the decision by Deutsche Börse on February 17. “This shows that we are on the right track with our realignment – and spurs us on to continue with the same energy.”

After joining Commerzbank in early 2021, Knof tightened the austerity course. The bank cut thousands of jobs and significantly reduced its branch network in Germany. In 2022, thanks to rising interest rates, Commerzbank made its highest profit since 2007 at a good 1.4 billion euros.

Commerzbank lost its place in the Dax in autumn 2018 because of its sharply reduced stock market value – to the payment service provider Wirecard. Commerzbank has been listed in the MDax for medium-sized companies since September 24, 2018. Wirecard collapsed in the summer of 2020 as a result of a balance sheet scandal involving air bookings worth billions, and the Dax then got stricter rules.

A place in the showcase of the German economy guarantees attention and attracts international investors. In addition, index funds (Exchange Traded Funds/ETFs) that replicate the composition of the leading index have to shift depending on the Dax list, which usually has an impact on the share prices of certain titles.

Source: Stern

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest Posts