Deutsche Börse increases the cap for the DAX index family to 15 percent - financial experts expected this

Deutsche Börse increases the cap for the DAX index family to 15 percent - financial experts expected this

According to a report by www.finanzen.net, Deutsche Börse has decided to raise the cap for the DAX index family from 10 to 15 percent. This decision is a reaction to the Linde fiasco and applies to the DAX 40, the MDAX, the SDAX and the TecDAX. According to experts, this step was to be expected since the previous capping limit led to 38 caps at four companies over the last ten years. The new regulation is scheduled to come into force on March 18, 2024.

The impact of this decision could be significant. First of all, the increase in the cap means that a company can now make up a maximum of 15 percent of the index, as opposed to the previous 10 percent. This could lead to a better price development of the leading index and the company concerned, as its shareholding is not limited so quickly.

In addition, Deutsche Börse's decision could deter companies from leaving the German capital market. This could be particularly good for the traditional German group Linde, which withdrew from the German capital market at the beginning of the year and was then listed on the New York Stock Exchange. Since then, Linde's value has increased by around a fifth to over 180 billion euros.

SAP SE, currently the most valuable company listed in Germany, would also be affected by Deutsche Börse's decision, as the share is currently the only one in the DAX that is affected by the 10 percent cap. This stock could benefit from the limit increase and continue its recent run higher.

The DAX share was 1.07 percent higher at 174.35 euros in XETRA trading at the close of trading. It remains to be seen how Deutsche Börse's decision will impact the market, consumers and the industry in the long term.