The German share index could get even bigger

According to Dirk Schiereck, an expert in corporate finance, the German share index could get even bigger. He found the expansion from 30 to 40 corporations, which is now being implemented, fundamentally very useful, said the Darmstadt economics professor. "If you look at other stock markets in Europe, the leading indices there are all larger, although these economies are smaller than the German one. That alone shows that an index with 30 members does not adequately reflect the German economy." In the future, an even broader list of the German benchmark index should be kept in mind, says Schiereck: "If there are more IPOs again and the price list should grow significantly, 40 would certainly not be the end. You can also imagine a Dax 50." Some market participants had been calling for a Dax increase for a long time. They justified this, among other things, with the fact that, compared to the Dax's opening year 1988, there are now much more larger listed values. Deutsche Börse is also tightening the rules for Dax membership. This is to prevent another scandal about a Dax member like the collapse of the payment service provider Wirecard. In addition, companies now fly out of the selection indices within two trading days in the event of bankruptcy. At Wirecard, the old set of rules had stipulated that the company would remain on the Dax, despite the air booking affair, until a regular check was carried out. The tightening of the criteria could only be a first step towards increasing the attractiveness of the leading index, said stock market expert Tobias Stöhr from the brokerage company Spectrum Markets. Manfred Schlumberger, chief portfolio manager at asset manager Starcapital, doubts that the Dax will be able to catch up with the competition thanks to the expansion. "US stock indices are much more attractive than their European counterparts because they have a very high share in promising sectors such as technology and communication. The Dax will not get them through the reform either, because they simply do not exist in this country." It has been official since Friday evening who the ten new companies will be in the future expanded first German stock exchange league: the Franco-German aircraft manufacturer Airbus, the chemicals dealer Brenntag, the cooking box supplier Hellofresh, the holding company Porsche, the sporting goods manufacturer Puma, the biotechnology and diagnostics company Qiagen, the pharmaceutical and laboratory supplier Sartorius, the medical technology group Siemens Healthineers, the flavor and fragrance manufacturer Symrise and the online fashion retailer Zalando. In return, the MDax of the medium-sized values ​​will be reduced from 60 to 50 titles.