Porsche drops out of DAX due to sluggish stock prices
STOXX, a German index management company, announced that Porsche will be removed from Germany's main stock index, the DAX, on September 22nd.
It was also announced that as part of a regular rotation, online real estate information service Scout24 will replace it.
The exclusion from the DAX is due to the prolonged slump in Porsche's share price, which is thought to be largely due to the impact of US tariffs on the European auto industry.
By the way, DAX is an index that compiles the stock prices of the 40 major companies listed on the Frankfurt Stock Exchange in Germany, and is one of the indicators that represents the German economy, like the Nikkei Stock Average in Japan and the Dow Jones Industrial Average in the United States.
Porsche expected to join MDAX
According to a recent announcement by a subsidiary of the Deutsche Börse Group, Porsche is expected to join the MDAX index, a stock index for mid-cap companies, later this month.
MDAX is a stock price index for medium-sized companies listed on the Frankfurt Stock Exchange, and is ranked second only to DAX. It mainly includes around 50 companies and is said to reflect the trends of growth-oriented medium-sized companies in the German economy.
It seems that the DAX is "Germany's leading large company index," while the MDAX is "a highly visible mid-sized company index."
Ahh, Porsche... (tears).
It's only been three years since Porsche joined the DAX following its initial public offering (IPO) in September 2022, but in recent months the company has repeatedly revised its earnings forecast downwards.
The reasons cited for this include a slower-than-expected transition to electrification, sluggish demand in China, and the impact of US tariffs.
Porsche shares have fallen by more than a third in the past 12 months.
Porsche CEO Oliver Blume said in an interview with the German newspaper FAZ that "we aim to return to the DAX as soon as possible."
He added, "The removal of Porsche, one of Germany's most valuable companies, from the DAX will mean that the DAX will be one company smaller, but given its large market capitalization and brand power, Porsche remains one of Germany's most representative listed companies."
But it comes with MDAX...
After going public, Porsche was once the car manufacturer with the largest market capitalization in Europe, but it was a surprise to see it removed from the DAX just three years later.
Oliver may be replaced as CEO of Porsche this fall.I'm looking forward to future Porsche and looking forward to some good news.
Source:Luxury carmaker Porsche to drop out of Germany's DAX index as US tariffs bite
Related article:
◆porsche listing
◆Looking back at Porsche in 2022
◆Who will be the next CEO of Porsche AG? Steiner and several others are candidates
I'm Rika, the author of this article. Since I got my hands on a Porsche 911, I've been completely hooked on Porsches and I can't stop loving them, so I started this blog. My favorite cars are the 911 Carrera (2/991), 911 Carrera Cabriolet & 911 Carrera T (1/992), GT3 (1/997) and 718 Cayman GT4 RS.
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