Porsche shares hit a new high
2022.12.06 04:11
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Porsche shares hit a new high
Budrigannews.com – Porsche (ETR:) After market operator Deutsche Boerse announced that it will join the benchmark later this month, preferred stock edged back up toward a record high in early trade on Tuesday in Frankfurt.
Despite the challenges posed by rising energy costs at its factories and persistent supply chain issues, the sports car manufacturer has had a successful start as a separately listed company. Since being spun off by Volkswagen, its parent company, it has increased by nearly 30% (ETR:). at the end of September, with investors happy to pay a higher price for a business with a long history of high profit margins.
Porsche is now worth more than Mercedes-Benz, with a market value of over 88 billion euros (1 euro = $1.0495). and has twice the value of Ferrari (NYSE:), which it was compared to during the IPO process as a benchmark.
According to Deutsche Boerse, the change in the index will take effect on December 19th. Every three months, the DAX’s members are chosen based on free float market capitalization.
Puma, a sportswear company, will be replaced by Porsche (ETR:), which has endured a miserable year as a result of a sharp decline in demand following the pandemic’s boom in athletic wear. Puma’s stock is down more than 50%, and the company recently lost its chief executive, Bjrn Gulden, to Adidas (ETR:), a rival in the same city.
As a result, the rebalancing will further sway the benchmark index of Europe’s largest economy toward the automotive industry. Porsche, Volkswagen, Mercedes-Benz, and BMW, as well as Volkswagen’s rivals (ETR:), the file additionally incorporates Daimler Truck Holding (ETR:), tiremaker Mainland (ETR:) and Porsche Car Holdings (ETR:), the vehicle through which Ferdinand Porsche’s descendants control both the sports car manufacturer and its parent company.
According to Deutsche Boerse, the DAX’s next review will take place on March 3.
Porsche stock was up 1.1% at 03:40 ET (08:40 GMT), while Puma stock was up 1%.
