The Strategist

Lufthansa leaves top 30 of German stock exchange for the first time in 30 years

06/05/2020 - 06:32

For the first time in several decades, the German airline Lufthansa left the main index of the Frankfurt Stock Exchange DAX, follows from the data of Deutsche Boerse AG. The stock exchange covers the 30 largest joint-stock companies in Germany. Earlier, airline management cited a possibility of bankruptcy in the wake of the COVID-19 coronavirus pandemic.

“Deutsche Wohnen SE shares will be included in the DAX and will replace Deutsche Lufthansa AG shares based on the quick exit rule. Lufthansa moves to the MDAX index,” the message reads.

MDAX is another index of the Frankfurt Stock Exchange. It unites 60 companies with medium capitalization. The changes in the index will take effect on June 22.

Earlier, Lufthansa completed the quarter with a loss of € 2.1 billion. Against the backdrop of financial problems, the company agreed with the German government to receive financial assistance in the amount of € 9 billion. At the same time, the state will buy back 20% of the shares from the company and will be able to appoint two of its representatives to the supervisory board. Thus, for the first time since 1997, the company may become partially state-owned.