ZFirst Commerzbank, then Lufthansa: the Rhine-Main region had to cope with two relegations from the leading German index in recent years. Since then, only five companies from Rhine-Main have been represented in the Dax. And the upcoming reform of the leading index will not change anything, although the Dax will probably be expanded from 30 to 40 stocks. On Tuesday, the results of a market consultation carried out by Deutsche Börse will be presented, which should show whether the country’s most important stock market index will get a new face. It’s about a larger number of companies, about new rules and other evaluation criteria. It is already becoming apparent: According to the latest assessment, the new climbers come from Berlin, Düsseldorf, Hanover, Munich, among others – but not from Frankfurt or the Rhine-Main region.
“The chances are not too good,” says Michael Bissinger, an analyst at DZ Bank in Frankfurt. Those corporations that have recently come through the Corona crisis well would have the best chances for the new addition, “including some business models with a high level of technology and sustainability, for example the Berlin online retailer Zalando, the biotech company Qiagen or Pharma supplier Sartorius ”, says Bissinger.
The trigger for the Dax reform and the market consultation that has now ended is the scandal surrounding the former Dax member Wirecard. Although the company had already filed for bankruptcy, the title was listed in the Dax for a long time. “It is important that Deutsche Börse can react more quickly in such cases and exclude companies from the Dax. That would be good for the company’s reputation, ”says Bissinger. Market participants such as the DZ Bank analyst had a month to comment on quality criteria and the transparency of the Dax. “This involves the submission of audited annual and interim reports, and the frequency for checking the composition is to be increased. We think that’s good, although it will of course lead to more changes in the Dax. “
Lufthansa’s recent decline in June was also a blow for the Rhine-Main region. Although Lufthansa is officially headquartered in Cologne, in fact, as Frankfurt is happy to point out, the group has long been operationally steered from the Aviation Center at Frankfurt Airport, and of course the company is Fraport’s most important customer. Since air traffic fell sharply due to the Corona crisis, the Lufthansa share price also crashed and the company’s stock market value melted. Particularly bitter: Lufthansa was a founding member of the German leading index in Frankfurt in 1988.
This also applies to Commerzbank, which left the elite league of listed companies in September 2018. At the Frankfurt financial center, Commerzbank’s decline was also seen as an alarm signal because three banks from the financial center were once represented in the Dax. The Dresdner Bank no longer exists, only the Deutsche Bank still represents the financial scene that is so important for Frankfurt in the illustrious circle of the Top 30 in Germany.