Handelsblatt editor Andrea Cünnen explains the complex rules for a possible promotion to the leading index Dax.
Transparent and understandable. This is how Deutsche Börse likes to describe the rules according to which it composes its indices. But it’s not that easy. The rules are complex in the small print, and there are many hurdles on the way to the Dax.
This is particularly evident in the current race between Commerzbank and the armaments group Rheinmetall to succeed Linde in the Dax. The industrial gases group only wants to be listed on Wall Street from March. The Dax loses its biggest heavyweight. On February 17, the stock exchange will announce who will move up to the Dax for Linde. But it goes back and forth beforehand.
The company with the highest average market value of freely traded shares in free float will move up. That is sometimes a science in itself, but index experts are certain that Commerzbank is well ahead of Rheinmetall.
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