FTSE and Co with a new composition

Published on: 04-Jun-2020
Category: Trading
Last updated: 04-Jun-2020

FTSE and Co with a new composition

The corona crisis has meanwhile produced significant winners and losers on the stock exchanges. The rise or fall of some listed companies in of the relevant indices is at stake. Airlines, but also cruise companies, are particularly affected by the negative effects of the pandemic. In the UK, four companies lost so much value that they could drop out of the London FTSE 100 index.

This includes the airline Easyjet, but also the cruise company Carnival. The cruise operator's share has lost almost 70 percent of its value since the beginning of the year. And Easyjet also had to cut most of its flights through the travel restrictions. The British aviation group Meggitt is also indirectly affected by the difficult times in the aviation industry. During the Corona crisis, the stock lost more than 50 percent of its value. The fourth critical company that is likely to drop into the FTSE 250 index is Centrica. The parent company of the energy provider British Gas has lost half of its value in the past three months and can no longer stay in the FTSE 100. The companies leaving the company would then be followed by new, sometimes more unconventional, companies. The pharmaceutical company Astra-Zeneca will rise to the top. Cybersecurity provider Avast would also be a winner of the shift within the indices. Sports betting provider GVC and trading company Kingfisher, which is based in the home improvement market, are also among the newcomers to the FTSE 100.

Also in Germany, two stock exchange values ??can be exchanged in the leading index Dax and the index of medium-sized companies (MDax). The airline Lufthansa could face a gradation in the MDax if the "Fast Exit" rule of the German Stock Exchange occurs. This says that a company will drop out of the Dax if its stock exchange turnover or market capitalization is worse than 45th place. Lufthansa was hit hard by the pandemic. The group suffered losses of two billion euros in the first quarter and the figures could look even worse in the second quarter. The share price has fallen by 38 percent since the beginning of the year. Now the state should save Lufthansa so that it can survive the corona crisis with its travel restrictions. If the airline were to descend, the real estate group Deutsche Wohnen would move up to the Dax.


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