Dhe Düsseldorf-based arms manufacturer Rheinmetall could now climb into the Dax after several narrow failures in March. As the investment bank Stifel Europe calculated, Rheinmetall moved up to the required 33rd place in the stock exchange’s February rankings for the first time on Monday. On Tuesday, this place was consolidated with a razor-thin lead.
Deutsche Börse will announce its decision on Friday evening after the US stock market close. According to Stifel calculations, Fresenius Medical Care is just behind Continental.
Before the war broke out in the Ukraine, Rheinmetall was far behind the Dax in 59th place in the stock market rankings, which are based on the market value of freely tradable shares. But after the beginning of the war, the share price doubled. The sudden surge in demand for Rheinmetall tanks and other weapons boosted investors’ earnings expectations.
Rheinmetall was several times a candidate for promotion to the Dax, but in June it was just behind Beiersdorf, in September behind Siemens Energy, in December its Porsche was ahead of it and just in February Commerzbank presented its profit statement in good time to put Linde in the To be able to come to Dax, otherwise it would have been Rheinmetall.
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Rheinmetall was still 37th in the January rankings, but the price has recently risen well above average again. Index specialist Tom Koula from the investment bank Stifel Europe points out the fact that the stock exchange ranking, which is always completed at the end of the month, includes the average value of the last 20 trading days of the month, of which a good 19 days were already over for February on Tuesday and Rheinmetall with 10.275 billion euros, 26 million euros ahead of the Dax value Qiagen.
“Rheinmetall’s average price so far is 236 euros, but the current price is higher at 243 euros, while Qiagen’s average price so far is 45 euros and the current price is 43 euros lower, so the gap tends to be even larger over the course of Tuesday be expected to be smaller,” says Koula. Rheinmetall could thus defend rank 33, which entitles it to be included in the Dax according to the “Fast Entry” rule. For Qiagen it is irrelevant whether they are in 33rd or 34th place, behind them are a good half dozen other Dax values, of which the smallest, probably FMC, has to be relegated if Rheinmetall makes 33rd place.
A residual uncertainty remains until Friday, because Deutsche Börse makes its own calculations as to how many shares it defines as freely tradable. Changes for the M-Dax should also be known on Friday evening. The Bavarian armaments group Hensoldt and the Thuringian opto-electronics group Jenoptik could rise here and displace Verbio and Software AG. All changes in the indices will take effect on March 20th.