The DAX seems to be on an unstoppable rise, and as it continues its ascent, let’s take a closer look at which companies are primarily driving this record surge of 18 000 points. Not all companies listed in the DAX contribute equally to the performance of the German flagship index. Instead, it’s some of the biggest players that set the direction – and that will continue to be the case in the future.Currently around 13 Companies contribute less than 1 percent to the DAX thus these companies contribution to the surge may or as l may personally say has been
Key DAX drivers
When we examine the performance of the DAX since the end of October, it becomes clear that five companies have significantly contributed to its upward trend. According to calculations by Handelsblatt, more than 60 percent of the entire DAX gain since October can be attributed to the stocks of Siemens, SAP, Airbus, Allianz, and Mercedes-Benz. Without them, the DAX would have only gained about eight percent, not the impressive 21 percent from the big five!!
Siemens
Since hitting its low point in October of last year, Siemens stock has impressively gained 37,5 percent in year from now. As the currently as of today, the heaviest member of the DAX with an index weight of 10.3 percent, Siemens has not only achieved historically good results but also recorded a record profit in the first quarter of the current fiscal year.
SAP
As Germany’s traditionally’s most valuable company as of now 2nd and with an index share of over nine percent, SAP is a heavyweight in the DAX. Since January, the stock has risen over 25 percent, with growth primarily driven by the cloud business.
Airbus
Airbus has only been listed in the DAX since September 2021 due to the extending of the DAX companies from 30 to 40, but has already had a significant impact. With a gain of over seven percent in the index, Airbus is the fourth most important stock in the DAX. Despite a slightly weaker net result last year, Airbus increased its operating profit and plans to further increase production. The increased events and critics of Boeing, production problems as well as aeroplane quality problems will likely have a significant effect on the competitor
Allianz
Since January 2023, Allianz stock has gained nearly 10 percent, slightly lagging behind the DAX. Nevertheless, the insurance company recorded a record result and surprisingly increased its dividend, attracting investor interest. The dividend is 5 percent which adds up to a quaterly dividend of 3,45 Euros.
Mercedes-Benz
Although Mercedes-Benz is not among the top five heavyweights in the DAX, the stock has gained around 15 percent since January. Analysts are optimistic and see further potential, as the automaker increased its dividend despite a conservative forecast and expanded its share buyback program.
Conclusion
Overally, these companies show that they have not only influenced the past of the DAX but are also crucial for its future. Their solid performance and positive outlook suggest that the DAX could continue on a bullish trajectory. Also worth a mention are Deutsche Telekom, Munich RE which is set to increase its dividend for the year. Infineon and BASF SE also contribute less than 5 % to the DAX however they are worth watching and observing as to how they are going to put an effort on the DAX rally.Rheinmetal AG also just contributes around 1 % to the DAX however it is set to make further developments as of January the Stock as already just gained over 50 %.
Adapted from Handelsblatt’s:
Image by Gerd Altmann from Pixabay
Limani Sti Thalassa 