DAX change: Daimler Truck and Hannover Re shares now in the DAX: Is it worth entering the newcomers – or the relegated? | news
• DAX promotion for Daimler Truck and Hannover Re
• Beiersdorf and Siemens Energy downgraded to MDAX
• Historically examined the performance of DAX climbers and climbers
Deutsche Börse includes Daimler Truck and Hannover Re in the DAX
Only recently was there a clear movement in the leading German index DAX. On March 21, the shares of Beiersdorf and Siemens Energy left the German stock market barometer, while Daimler Truck and Hannover Re slipped behind.
Daimler Truck was only spun off from the parent company, which has since changed its name to Mercedes-Benz, and listed on the stock exchange in December 2021. In February, the truck manufacturer’s shares then rose to the MDAX small-cap index. However, the paper ended the first day of trading in the top German stock exchange league somewhat weaker: Ultimately, XETRA trading fell by 0.34 percent to EUR 24.42, and the share most recently cost EUR 26.34 (closing price on March 28). March 2022).
The shares of the reinsurer Hannover Re did significantly better. Driven by the rise in the index, the paper climbed by 4.01 percent to EUR 149.10 by the end of trading. The share was last traded at EUR 150.80 (closing price on March 28, 2022).
Shares in the two relegated Beiersdorf and Siemens Energy meanwhile fall by 3.68 percent to 88.00 and 0.47 percent to 21.35 euros. Most recently they cost 94.06 euros and 20.56 euros respectively.
Is the right time to start for DAX newcomers?
The exchange of the DAX values may raise the question for one or the other investor as to whether an entry into the new members of the leading index could be worthwhile. On the other hand, there is also the possibility of a recovery for the shares that were banned from the DAX. Fund manager Sven Lehmann from asset manager HQ Trust dealt with these questions. This is how the analyst classified the movement of those moving up and down the leading index in comparison with the performance of the stock market barometer itself – one, three, six and twelve months before and after the index change. The data span the period from August 1994 to March 2022 and contain all changes that were determined on the basis of “regular exchange criteria”, such as market value, and for which a value had moved up directly after a departure, as the business mathematician says in the text on the website explained to society.
This is how the DAX climbers move in comparison to the leading index
As part of his investigation, Lehmann came to the conclusion that the shares of the companies that moved up moved much more strongly than the DAX itself before the change. “Over the year, the newcomers achieved an average outperformance of a good 25% on the DAX,” writes the expert . “Also with a view to the last three and six months before the replacement cuts, climbers are dying off better than the index.” However, a change in this upward dynamic can be seen one month before the ascent. The titles of the newcomers are already behind the DAX in this period, after inclusion in the leading index the minus increases further. According to this, the index climbers move an average of 13.9 percent lower than the DAX one year after the change.
Ex-DAX members behind the stock market barometer after downgrading
Could it be worthwhile for investors to invest in relegated stocks such as Beiersdorf and Siemens Energy recently? A year before the devaluation, the downgraded titles fell by an average of 23.5 percent, three months earlier the minus had reduced to 2.2 percent. A month before the change, the soon-to-be relegated can even be quoted an average of 0.9 percent higher than the leading German index. After the withdrawal, the DAX alumni remain well behind the leading index on average. A year later, the minus here is 10 percent.
No buy recommendation for DAX newcomers and ex-DAX stocks
“From a historical perspective, it’s not worth buying either climbers or climbers,” is the result of Lehmann’s analysis. “After the change, both groups are on average worse than the DAX.” The stars are said to be bad for the fund manager for an entry into the newcomers Daimler Truck and Hannover Re, but an investment in the new secondary stocks Beiersdorf and Siemens Energy can also backfire.
According to Deutsche Börse, the next review of the DAX index family is scheduled for June 3, 2022.
Editorial office finanzen.net
This text is for informational purposes only and does not constitute an investment recommendation. finanzen.net GmbH excludes all claims for recourse.
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