DAX 30 Price Outlook:
- Wirecard’s fall from grace has left shareholders reeling as price plunged and market capitalization evaporated
- As a result, the stock is now the smallest component on the DAX 30[1] and it no longer posses the qualifications to trade on the index
- How to Trade Dax 30: Trading Strategies and Tips[2]
DAX 30 Forecast: What Stock Will Replace Wirecard on the DAX 30 Index?
The DAX 30 has enjoyed added time in the spotlight in recent weeks, although not for good reason as an accounting scandal at Wirecard revealed billions in missing funds that may be nonexistent altogether. As a result, the stock’s share price crashed from roughly 105 Euro[3] per share two weeks ago to just 3 Euro per share this week. Unsurprisingly, the price decline led to an evaporation of the stock’s market capitalization which has seen Wirecard tumble down the ranks of the DAX 30 index.
Now worth a pittance compared to what it once was, Wirecard is destined for removal from the German equity index which means another stock will graduate to the country’s most widely-watched stock basket. According to Deutsche Börse Group, the operator of the DAX 30 index, components are chosen by market capitalization and trading volume which typically propels the largest member of the MDAX to become a smaller – if not the smallest – component on the DAX 30.
DAX Progression Chart
Source: Deutsche Börse
To that end, current market pricing would suggest Airbus is the stock destined to replace Wirecard as it is currently the corporation with the highest market capitalization on the MDAX, accounting for more than 10% of the index – but it is already listed in France on the CAC 40[4]. Thus,
