Introduction:
Greetings And Welcome To Moneycontrol, Your Go-To Source For News, Analysis, And Market Insights On Finance. We’ll Examine The DAX, One Of The Most Well-Known European Stock Market Indices, In This Guide, Which Is Accessible On Moneycontrol. We’ll Go Over Everything You Need To Know To Confidently Traverse The World Of DAX, From Its Composition And Significance To How It’s Calculated And Understood.
Describe DAX:
The Main Stock Market Index Of The Frankfurt Stock Exchange (Frankfurter Wertpapierbörse) In Germany Is Called The DAX, Or Deutscher Aktienindex. It Is An Important Benchmark For The German Stock Market And The Larger European Economy Since It Shows The Performance Of The 30 Biggest And Most Liquid Companies Listed On The Exchange.
What Makes Up The DAX:
The DAX (Deutscher Aktienindex (German stock index); German pronunciation: [daks] ⓘ) is a stock market index consisting of the 40 major German blue chip companies trading on the Frankfurt Stock Exchange. It is a total return index. Prices are taken from the Xetra trading venue. According to Deutsche Börse, the operator of Xetra, DAX measures the performance of the Prime Standard’s 40 largest German companies in terms of order book volume and market capitalization. DAX is the equivalent of the UK FTSE 100 and the US Dow Jones Industrial Average, and because of its small company selection it does not necessarily represent the vitality of the German economy as a whole.
The L-DAX Index is an indicator of the German benchmark DAX index’s performance after the Xetra trading venue closes based on the floor trading at the Börse Frankfurt trading venue. The L-DAX Index basis is the “floor” trade (Parketthandel) at the Frankfurt stock exchange; it is computed daily between 09:00 and 17:45 Hours CET. The L/E-DAX index (Late/Early DAX) is calculated from 17:55 to 22:00 CET and from 08:00 to 09:00 CET. The Eurex, a European electronic futures and options exchange based in Zürich, Switzerland with a subsidiary in Frankfurt, Germany, offers options (ODAX) and Futures (FDAX) on the DAX from 01:10 to 22:00 CET or from 02:10 to 22:00 CEST.
The Base date for the DAX is 30 December 1987, and it was started from a base value of 1,000. The Xetra technology calculates the index every second since 1 January 2006.
On 24 Nov 2020, Deutsche Börse announced an expansion of the DAX from 30 to 40 members and a tightening of rules in response to the Wirecard accounting scandal. The expansion occurred in the 3rd quarter of 2021.
Versions:
The DAX has two versions, called performance index and price index, depending on whether dividends are counted. The performance index, which measures total return, is the more commonly quoted, however the price index is more similar to commonly quoted indexes in other countries.
Contract Specifications:
DAX futures are traded on the Deutsche Borse Indices & ETF exchange (DBIndex). The contract specifications for the DAX Combined Index (ticker symbol DAXA) are listed below:
| DAX Combined Index (DAXA) | |
|---|---|
| Exchange: | DBIndex |
| Sector: | Index |
| Tick Size: | 0.01 |
| Tick Value: | 1 EUR |
| Big Point Value (BPV): | 100 |
| Denomination: | EUR |
| Decimal Place: | 2 |
Price history:
On 16 March 2015, the performance index first closed above 12,000. On 10 April 2015, the price index first closed above its closing high from 2000.
Record values:
| Category | All-time highs | |
|---|---|---|
| Closing | 18,492.49 | Thursday, 28 March 2024 |
| Intraday | 18,567.16 | Tuesday, 2 April 2024 |
Annual returns:
The following collapsible table shows the annual development of the DAX, calculated retroactively up to 1950.
| Year | Closing level | Change in Index in Points |
Change in Index in % |
|---|
Components:
Below is the list of companies which are a component of the DAX 40, as of 20 March 2023. The current stock prices and list of DAX companies are available from financial websites. The index weighting refers to the DAX performance index.
| Logo | Company | Prime Standard Sector | Ticker | Index weighting (%)1 | Employees | Founded |
|---|---|---|---|---|---|---|
 |
Adidas | Apparel | ADS.DE | 2.0 | 61,401 (2021) | 1924 |
 |
Airbus | Aerospace & Defence | AIR.DE | 6.0 | 126.495 (2021) | 1970 |
 |
Allianz | Financial Services | ALV.DE | 7.1 | 155,411 (2021) | 1890 |
 |
BASF | Chemicals | BAS.DE | 3.5 | 111,047 (2021) | 1865 |
 |
Bayer | Pharmaceuticals | BAYN.DE | 4.8 | 99,637 (2021) | 1863 |
 |
Beiersdorf | Consumer goods | BEI.DE | 0.9 | 20,567 (2021) | 1882 |
 |
BMW | Automotive | BMW.DE | 2.5 | 118,909 (2021) | 1916 |
 |
Brenntag | Distribution | BNR.DE | 0.9 | 17,200 (2021) | 1874 |
 |
Commerzbank | Financial Services | CBK.DE | 0.8 | 40,181 (2021) | 1870 |
 |
Continental | Automotive | CON.DE | 0.6 | 190,875 (2021) | 1871 |
 |
Covestro | Chemicals | 1COV.DE | 0.6 | 17,909 (2021) | 2015 |
 |
Daimler Truck | Automotive | DTG.DE | 1.1 | 99,849 (2021) | 2021 |
 |
Deutsche Bank | Financial Services | DBK.DE | 1.6 | 82,969 (2021) | 1870 |
| Deutsche Börse | Financial Services | DB1.DE | 2.7 | 10,200 (2021) | 1992 | |
 |
Deutsche Post | Logistics | DHL.DE | 3.4 | 592,263 (2021) | 1995 |
 |
Deutsche Telekom | Telecommunication | DTE.DE | 6.5 | 216,528 (2021) | 1995 |
 |
E.ON | Utilities | EOAN.DE | 1.9 | 78,126 (2021) | 2000 |
 |
Fresenius | Healthcare | FRE.DE | 0.8 | 316,078 (2021) | 1912 |
 |
Hannover Re | Insurance | HNR1.DE | 0.8 | 3,346 (2021) | 1966 |
 |
Heidelberg Materials | Construction Materials | HEI.DE | 0.7 | 51,209 (2021) | 1874 |
 |
Henkel | Consumer Goods | HEN3.DE | 0.9 | 52,450 (2021) | 1876 |
 |
Infineon Technologies | Technology | IFX.DE | 3.9 | 50,280 (2021) | 1999 |
 |
Mercedes-Benz Group | Automotive | MBG.DE | 4.8 | 172,000 (2021) | 1926 |
 |
Merck | Pharmaceuticals | MRK.DE | 1.8 | 8,081 (2021) | 1668 |
 |
MTU Aero Engines | Aerospace & Defence | MTX.DE | 1.0 | 10,833 (2022) | 1934 |
 |
Munich Re | Financial Services | MUV2.DE | 3.6 | 40,177 (2022) | 1880 |
| Porsche | Automotive | P911.DE | 1.1 | 36,996 (2021) | 1931 | |
 |
Porsche SE | Automotive | PAH3.DE | 0.6 | ,882 (2021) | 2007 |
 |
Qiagen | Biotech | QIA.DE | 0.8 | 5,900 (2021) | 1984 |
 |
Rheinmetall | Aerospace & Defence | RHM.DE | 25.486 (2022) | 1889 | |
 |
RWE | Utilities | RWE.DE | 2.2 | 18,246 (2021) | 1898 |
 |
SAP | Technology | SAP.DE | 10.1 | 107,415 (2021) | 1972 |
 |
Sartorius | Medical Technology | SRT3.DE | 0.8 | 18,832 (2021) | 1870 |
 |
Siemens | Industrials | SIE.DE | 9.0 | 303,000 (2021) | 1847 |
 |
Siemens Energy | Energy technology | ENR.DE | 0.7 | 92,000 (2021) | 2020 |
 |
Siemens Healthineers | Medical Equipment | SHL.DE | 1.2 | 66,000 (2021) | 2020 |
 |
Symrise | Chemicals | SY1.DE | 1.1 | 11,276 (2021) | 2003 |
 |
Volkswagen Group | Automotive | VOW3.DE | 2.4 | 672,800 (2021) | 1937 |
 |
Vonovia | Real Estate | VNA.DE | 1.1 | 15,900 (2022) | 2001 |
 |
Zalando | E-Commerce | ZAL.DE | 0.7 | 17,000 (2021) | 2008 |
Thirty Blue-Chip Businesses From A Variety Of Industries, Including Finance, Healthcare, Technology, And Automotive, Make Up The DAX. Several Well-Known Companies That Are Part Of The DAX Are Bayer, SAP, Siemens, And Volkswagen. The Market Capitalization, Trading Volume, And Other Factors Decided Upon By The Index Provider Are Used To Choose These Companies.
Relevance Of The DAX:
The DAX, One Of Europe’s Top Stock Market Indices, Acts As A Gauge Of German Economic Performance And Investor Mood. Investors, Analysts, And Decision-Makers Keep A Careful Eye On It For Clues About The State And Trajectory Of The German Economy As Well As More General Trends In The European Financial Markets.
Methods Of Calculation:
Because The DAX Is A Price-Weighted Index, Rather Than Being Weighted According To Market Capitalization, Its Constituents Are Weighted According To Their Stock Prices. This Indicates That The Swings Of The Index Are More Influenced By Higher-Priced Stocks. A Base Value Of 1,000 Points Is Used In The Calculation Of The Index, And This Value Is Where Its Historical Performance Begins.
Analyzing The Performance Of DAX:
The DAX Fluctuates In Response To Changes In The Stock Values That Make Up Its Components, Which Are Impacted By A Number Of Variables Such Company Profits, Financial Metrics, World Politics, And Investor Attitude. While A Falling DAX May Indicate Investor Caution Or Worries About The State Of The Economy, A Rising DAX Is Typically Seen As An Indication Of Bullish Mood And A Favorable Economic Outlook.
DAX Performance Influencing Factors:
The Following Are Some Of The Variables That May Affect The DAX’s Performance:
Measures Of The Economy:
Important Economic Indicators That Affect Investor Sentiment And Stock Market Movements Include GDP Growth, Unemployment Rates, And Inflation.
Profits For The Company:
The Performance Of The Index Can Be Significantly Impacted By The Financial Success Of DAX Participants, Particularly Revenue Projections And Quarterly Earnings Releases.
Worldwide Occurrences:
Global Economic Trends, Trade Disputes, And Geopolitical Events Can All Have An Impact On Investor Confidence And Market Volatility, Which In Turn Can Affect The DAX.
Policies Of Central Banks:
The European Central Bank (ECB) And Other Central Banks’ Monetary Policy Choices Have The Potential To Affect The DAX By Influencing Interest Rates, Inflation Expectations, And General Market Conditions.
Examining DAX Patterns:
Traders And Investors Examine DAX Trends And Pinpoint Possible Trading Opportunities Using A Variety Of Technical And Fundamental Analytical Tools. Technical Indicators That Can Be Used To Identify Trends, Momentum, And Possible Reversal Points In The DAX Chart Include Moving Averages, The RSI (Relative Strength Index), And The MACD (Moving Average Convergence Divergence).
Summary:
In Addition To Serving As An Important Benchmark For The German Stock Market, The DAX Offers Insightful Data On The State Of The European Economy. Investors Who Want To Successfully Traverse The Markets Must Comprehend Its Composition, Relevance, Calculation Process, And Factors Affecting Its Performance. With The Thorough Protection With Research Supplied By Moneycontrol, Investors May Remain Knowledgeable And Make Wise Choices Throughout Their Investing Journey.
