In the spring, the so-called cap limit for the DAX index family is to be raised from the current 10 to 15 percent, as the stock exchange operator announced on Wednesday evening in Zug. The new rules apply to the DAX 40, the MDAX, the SDAX and the TecDAX. Experts had expected this step.
“The capping limit of 10 percent has led to a total of 38 caps at four companies in the DAX over the last ten years. However, in the same period, no company has reached the 15 percent,” was the justification. The new limit is scheduled to take effect with the index review on March 18, 2024.
According to the rules, a company may only have a maximum weight of the cap limit, which was previously ten percent. If the share still rises faster than other stocks or the index, its share will be limited accordingly. This in turn hinders the price development of the leading index and the affected stock.
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Funds that follow the DAX, on the other hand, have to sell shares in order to reflect companies again – and that causes the price to slide downwards. The traditional German group Linde in particular was hit hard by this: the withdrawal from the German capital market at the beginning of the year, which was a bitter defeat for Deutsche Börse, was justified, among other things, by this.
Linde has had its main listing on the New York Stock Exchange since the end of February. The withdrawal from the German capital market was good for investors. Since then, Linde shares have continued their record hunt. The stock market value has increased by around a fifth since the end of February to the equivalent of just over 180 billion euros. For comparison: the DAX rose just under four percent during that time.
SAP SAP SE is currently the most valuable company listed on the stock exchange in Germany. The software manufacturer’s market capitalization climbed by almost half this year to 173 billion euros. The share is currently the only one in the DAX that is affected by the 10 percent cap. It could continue its recent high after Deutsche Börse’s decision on Wednesday.
The DAX share shows little movement in XETRA trading at 172.55 euros.
TRAIN (dpa-AFX)
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