What is the DAX Index
The DAX Index (Dax Stock Index) refers to Germany's most important stock index, composed of 30 publicly traded companies with the largest market capitalization, weighted by market value. Launched by Deutsche Börse Group, it is a significant securities index comparable to the UK's FTSE and is one of the key indices in the global securities market.
The 30 constituent companies of the DAX Index represent the core sectors of the German economy, including industries such as industrials, finance, technology, and services. The index's fluctuations reflect the overall rise and fall of the German stock market and the potential performance of the German and European economies. The DAX Index is a critical indicator monitored by global investors and analysts and serves as a vital reference for international investors seeking to invest in the German stock market.
Development History of the DAX Index
The development history of the DAX Index can be traced back to July 1988, when it was introduced by the Frankfurt Stock Exchange with a base value of 1,000 points. Below are some key milestones in its development.
- July 1, 1988: The DAX Index was officially released, comprising 30 of Germany's largest publicly listed companies.
- 1990: After the reunification of East and West Germany, some East German companies were included in the DAX Index.
- 2000: Benefiting from the internet bubble, the DAX Index reached an all-time high of 8,105.69 points.
- 2003: Due to the global economic recession and stock market crash, the DAX Index fell to around 2,200 points.
- 2007: The DAX Index hit another record high of 8,152.73 points.
- 2008: The DAX Index was severely impacted by the U.S. subprime mortgage crisis and the global financial crisis, dropping to 4,810.20 points.
- 2015: The DAX Index surpassed the 12,000-point mark for the first time.
- 2023: As of July 24, 2023, the DAX Index reached a new historical high of 16,427.42 points.
Constituents of the DAX Index
The constituents of the DAX Index are adjusted quarterly. As of September 2021, the DAX Index includes the following 30 companies.
- Adidas AG (Sporting Goods)
- Allianz SE (Insurance)
- BASF SE (Chemicals)
- Bayer AG (Pharmaceuticals)
- Siemens Energy AG (Energy)
- Bayerische Motoren Werke AG (BMW, Automotive)
- Continental AG (Transportation Manufacturing)
- Covestro AG (Polymer Materials)
- Daimler AG (Automotive)
- Deutsche Bank AG (Financial Services)
- Deutsche Börse AG (Financial Services)
- Deutsche Post AG (Logistics)
- Deutsche Telekom AG (Telecommunications)
- Deutsche Wohnen SE (Real Estate)
- E.ON AG (Energy)
- Fresenius SE (Healthcare, Hospitals)
- Fresenius Medical Care AG & Co. KGaA (Renal Products and Services, a subsidiary of Fresenius SE)
- Henkel AG (Chemicals)
- Infineon Technologies AG (Semiconductors)
- Linde AG (Chemicals)
- Merck KGaA (Chemicals, Pharmaceuticals)
- MTU Aero Engines AG (Aviation Engines)
- Metro AG (Retail)
- Münchener Rückversicherungs-Ges. AG (Munich Re, Insurance)
- RWE AG (Energy)
- SAP AG (Enterprise Software and Solutions)
- Siemens AG (Electronics Manufacturing)
- Volkswagen AG (Automotive)
- Vonovia SE (Real Estate)
- Delivery Hero SE (Online Food Delivery Services)
