Legendary sports and luxury car maker Porsche AG will drop from Germany’s leading DAX stock index on September 22, Deutsche Börse said, quoted by Reuters.
The company, which entered the index after its historic IPO in 2022, will be replaced by Scout24, the operator of Germany’s largest real estate platform.
Why is Porsche losing ground?
Porsche has been hit hard by US import tariffs and weakening demand in the key Chinese market. This has led to a drop in shares by more than a third in the past year, making the company the second worst-performing asset among German giants after pharmaceuticals company Merck.
Chief Executive Oliver Blume, who also heads Volkswagen, said the reasons were “technical” and related to corporate finance. “With Porsche’s new strategy, we have the clear ambition to return to the DAX as soon as possible,” he stressed.
Countermeasures and future plans
The company has already announced adjustments to its pricing policy after the publication of its first-half results on July 30. The restructuring of the business is expected to improve the performance of the shares.
Porsche will move to the MDAX mid-cap index for the time being.
New players in the DAX
The vacated spots in the main index will be filled by two companies: the Düsseldorf-based machine builder GEA Group and the real estate portal Scout24. This will be their first inclusion in the DAX.
