Beneath the DAX, Deutsche Börse's index concept differentiates according to classic and technology sectors, and these indices are open for international companies. The TecDAX will be introduced as the new blue chip index for the technology sectors and will include the 30 largest companies from these sectors. The TecDAX will replace the Nemax 50 as the benchmark for technology companies. The Nemax 50 will continue to be calculated until the end of 2004, in order to preserve the continuity of the financial products based on this index. As of March 24, the Nemax 50 will include the 50 largest companies from the technology sectors, as opposed to the 50 largest companies of the Neuer Markt. The 30 largest companies of the Nemax 50 are therefore identical with those of the TecDAX.
The MDAX will be reduced from 70 to 50 equities and will include the 50 largest companies from the classic sectors. With the inclusion of Depfa Bank, EADS, Teleplan and Thiel Logistik, the MADX will include international companies for the first time. The reduction in the number of companies in the MDAX and the inclusion of international companies with high trading volumes will increase the liquidity of the index and make the MDAX more attractive for investors.
The SDAX will include the 50 companies from classic sectors ranked immediately below the MDAX and will offer small and medium sized companies an attractive showcase for their investors. As of March 24, the SDAX will also include international companies: Gericom, Highlight Communications and Sauer-Danfoss.
The changes to the indices will come into effect as of March 24. The next review of the index composition is on May 8, 2003.
The new index composition is a result of the restructuring of the Germany equity market that divides the market into two new segments, Prime Standard and General Standard. These segments differ in terms of their respective transparency criteria and aim to increase the level of disclosure requirements in the interests of investors. The admission to Prime Standard is a prerequisite for companies to be listed in a selection index. To date, some 370 companies have been admitted to Prime Standard.
