The DAX is an index made up of some of the largest companies within Germany listed on the Frankfurt Stock Exchange. The companies listed on the DAX must meet specific criteria – a testament to the high quality these companies display. The DAX data over a period of 42 years – is relatively linear (inc. inflation) showing a strong positive relationship between time and the price of the DAX. But the 30 companies inside the index are attracting investors in incredible volumes. Here’s 3 companies that have been the main talking points in regards to the DAX performance.
Wirecard AG (ETR:WDI) is a German payment processor and financial services provider with a market capital north of $10 billion. The stock itself has fallen from grace with a gradual decline since 2018. The stock was yet to find it’s equilibrium pre-COVID, with the price now bottomed out at $86. Now this is not the only hot water Wirecard has slipped into, as news broke the German accountancy watchdog has allegedly opened an investigation according to the Financial Review. This looks like bad news for long term shareholders, however some investors have seen this as an opportunity to buy. Trading at half it’s value in 2018, this is a stock that is one to watch.
Bayer AG (ETR: BAYN) is a well known German pharma bragging a market cap of $57 Billion. The stock has seen a steady recovery since the market crash as investors find confidence in veteran pharma which was established in 1863. The stock surged on Monday as the company made headway in it’s current lawsuit which has linked it’s Round-up weedkiller product with cancer. The Weed killer was taken on by Bayer in 2018 when they actioned a $63 billion acquisition of agricultural chemicals company Monsanto. This acquisition had unseen consequences, however the company is aiming to resolve these lawsuits as fast as legally possible. This is good news for investors as the weight of this multi-billion dollar lawsuit begins to lift.
Allianz (ETR:ALVG) would have to be one of the most profound German companies performing on a global scale. The company boasts a market cap of $67 billion and an impressive dividend yield of 6.17%. The company has seen some strong gains over the past weeks, as the markets begin to back-track their losses. The company has found an equilibrium trading price at $160, roughly a 30% decrease in stock value. This company has strong management and the potential to completely recover within the next 1-2 years (opinion not advise). Allianz is very similar to the ASX Macquarie Bank. Both companies have exceptional management as well as boasting sensational financial results pre-covid. We could be looking at a very steady and strong recovery if the market remains steady over the next few months. This is a stock to watch.
It seems the German DAX continues to provide global investors opportunities to enter a market with strong yields and impressive corporate Goliaths. If you enjoy our German updates, you can subscribe to us for free below.
The information above should not be taken as financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.
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