(News Bulletin 247) – Commerzbank will replace Linde in the DAX index next week, stock market operator Qontigo’s index board said in a statement on Friday.
This change was unplanned, since the next quarterly assessment of the composition of the index was originally scheduled to take place on March 3.
This decision, which follows on from Linde’s decision to withdraw from the Frankfurt Stock Exchange in order to focus on its New York listing, will be effective from the session on Monday, February 27.
The composition of the DAX is determined according to several criteria, including liquidity, ie the trading volumes of securities, and the level of free float, ie the part of a company’s capital in circulation on the markets.
Commerzbank’s share price, which has gained 62% over the last six months, currently shows a free float of 12.1 billion euros, much lower than that of Linde which stands at 150.5 billion .
But the banking group had been campaigning for several weeks for its return to the flagship index of the Frankfurt Stock Exchange, which it had left in 2018.
Its title fell by 1.8% Monday morning in Frankfurt following this announcement.
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