Almost four years and six months after its relegation, Commerzbank returned to Germany’s top stock market league on Monday and is once again one of the 40 members of the DAX. At the start of trading, Group CEO Manfred Knof and CFO Bettina Orlopp rang the stock exchange bell on the Frankfurt trading floor.
Knof stressed that the DAX return was a good signal for the German banking industry and that the prestigious return was an incentive for Commerzbank to continue on its path. The withdrawal of industrial gas producer Linde from the Frankfurt Stock Exchange made the early return of the DAX founding member possible.
Commerzbank had lost its place in the DAX in the fall of 2018 due to its sharply trimmed stock market value and had since been listed in the MDAX of mid-cap stocks. It had not been included in the DAX since September 24, 2018.
A place in the showcase of the German economy guarantees attention and attracts international investors. Index funds that track the composition of the leading index have to rebalance depending on the DAX lineup, which usually has an impact on the share prices of certain stocks.
Commerzbank will not rest on its success in returning to the DAX, stressed Chief Financial Officer Orlopp. The expectations for a DAX stock are greater than for an MDAX stock, she said. She stressed that the bank wants to become a reliable dividend payer again.
Commerzbank shares rose sharply at the start of trading on Monday, continuing their strong performance of recent months. DZ Bank upgraded the Commerzbank share to “buy” and raised the fair value.