Porsche expands its presence in Germany's DAX index
It Looks Like Porsche Might Be Joining the DAX by Christmas!
Get ready, folks! It appears that iconic car manufacturer Porsche is set to join the prestigious DAX before Santa even gets his hat on. This exciting announcement comes courtesy of investment guru Tom Koula from Stifel Europe. He chatted to Deutsche Presse-Agentur (dpa) and revealed that Porsche, the new kid on the block, must "absolutely" be welcomed into the German benchmark index.
So, why all the fuss? Well, Porsche, fresh off their stock market debut in September, boasts a market value of around 15 billion euros. With this impressive figure, they're up in 22nd place, just behind housing firm Vonovia. In other words, they're practically knocking on the DAX's door! In fact, they're so close, they could practically be called a 'Fast Entry', which means they could be included in the DAX faster than your favorite car can hit 60 mph!
But wait, there's more! If Porsche joins, the VW universe will be heavily represented in the DAX, with Volkswagen preferred shares, Porsche Holding, and the Porsche sports car stock all holding court. Currently, only electronics juggernaut Siemens is rocking a three-pack in the DAX, with subsidiaries Siemens Energy and Siemens Healthineers holding down the fort.
However, Siemens Energy is one of the candidates for removal, which could pave the way for Porsche. Online retailer Zalando is also nervous, but it seems sportswear maker Puma could be the one shaking in its boots the most. According to Koula, Puma, the smallest DAX member by free float market value, could be the biggest shaky one right now. The share price has taken a hit due to profit warnings from competitor Adidas, but Koula thinks that punishment has been a bit unfair, as Puma's own figures have managed to stay strong.
Next year, we can expect even more changes in the DAX if the Linde annual general meeting gives the green light for a move to the US as the home exchange. In that case, Commerzbank would likely be the first candidate for replacement, but Rheinmetall and Delivery Hero might also be in the running.
Are you ready to see if Porsche makes it into the DAX tonight? Tune into the stock market game "Depot Champ" at depotchamp.de/livestream, starting at 7 pm!
Note on Conflicts of Interest:The CEO and majority shareholder of the publisher Börsenmedien AG, Mr. Bernd Fötsch, and the editor-in-chief of this publication, Mr. Frank Pöpsel, have entered into direct and indirect positions in the financial instruments mentioned in the publication or related derivatives, which could benefit from the potential price development resulting from the publication.
- If Porsche joins the DAX as expected, they would join other major players like Siemens and Volkswagen, potentially creating a strong presence for the automotive industry in the index.
- The finance and transportation sectors might see significant shifts, as the potential addition of Porsche to the DAX could lead to other companies being replaced, such as Commerzbank, Rheinmetall, or Delivery Hero.
- With an impressive market value of around 15 billion euros, Porsche is likely to bring a significant contribution to the DAX, further benchmarking the index for growth in the automotive business.
- The inclusion of Porsche in the DAX could lead to a vast change in the industry landscape, as they currently rank 22nd, just behind housing firm Vonovia and potentially upend the current smallest member by free float market value, Puma.
- The anticipated IPO of Porsche could create a ripple effect in the finance world, as more automotive companies might consider similar moves, potentially influencing the composition and performance of the DAX in the near future.
