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Days of Lufthansa in the Dax are probably numbered

2020-06-05T18:18:25.658Z


The days of Lufthansa in the first German stock market league are probably numbered. The decision will be made on Thursday evening.


The days of Lufthansa in the first German stock market league are probably numbered. The decision will be made on Thursday evening.

Frankfurt / Main (dpa) - The descent of the Lufthansa share in the corona crisis is likely to be followed by the airline's relegation from the Dax. The latest rankings of Deutsche Börse indicated that the decision will be taken on this Thursday evening (10 p.m.).

The Berlin real estate group Deutsche Wohnen is considered a potential climber in the German share index. The changes would be implemented by June 22 this year.

Deutsche Börse regularly reviews the composition of its stock indices. Decisive for belonging to the group of 30 Dax groups are stock exchange turnover (trading volume) and stock exchange value (market capitalization) of a company.

At Lufthansa, not only the recent weak share price hits the register, but also the lower free float. In March, Munich-based entrepreneur and billionaire Heinz Hermann Thiele joined the airline as a major shareholder through his investment holding company KB Holdings. Its share is now 10 percent.

Index changes are particularly important for funds that exactly replicate indices (ETFs). There must then be shifted accordingly, which usually has an impact on the share prices. Belonging to the Dax is also a question of prestige: the leading index is the figurehead of the German economy, especially for international investors.

With a Dax relegation, Deutsche Lufthansa AG would be in a well-known company: In September 2019, the industrial veteran Thyssenkrupp had to leave the top stock market index, a year earlier Commerzbank had to make room for the payment processor Wirecard. Thyssen and Commerzbank also belonged to the group of 15 companies that had been listed in the index without interruption since the start of the Dax on July 1, 1988.

Lufthansa has come under heavy pressure in the Corona crisis because air traffic has hardly been possible for months. This is why thousands of jobs are at risk in the group with around 138,000 employees. The federal government has put together an aid package that provides various aid and equity measures totaling around nine billion euros. In return, the state economic stabilization fund (WSF) is to take over 20 percent of the shares. It is also planned that the federal government will hold two posts on the 20-member Lufthansa supervisory board.

Source: merkur

All news articles on 2020-06-05

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