Deutsche Bank Set to Leave Euro Stoxx 50 Index

   By Alberto Delclaux 
 

Deutsche Bank AG (DNK.XE) is one of three companies set to leave the Euro Stoxx 50 index following the index operator's annual review, according to analysts, a reflection of the significant decline in the bank's market value in 2018.

The changes, based on the companies' closing prices on Aug. 31, will take effect from market close on Sept. 21, according to Societe Generale. Analysts at Davy and LBBW have also outlined the upcoming changes.

Deutsche Boerse AG (DB1.XE), which owns index provider Stoxx, wasn't immediately available for comment.

Deutsche Bank's share price has fallen 38% since the beginning of the year as it has struggled with profitability amid restructuring efforts and recent management upheaval.

In a statement on Tuesday, the German lender said its activities and strategy to improve profitability would be unaffected by the removal.

"We expect [our strategy] will support the valuation of Deutsche Bank by the market, and therefore increase market capitalization," the bank said.

Removal from the Euro Stoxx 50 will mean the bank is excluded from exchange-traded funds that follow the index.

Alongside Deutsche Bank, Compagnie de Saint-Gobain SA (SGO.FR) and E.ON SE (EOAN.XE) will be removed from the index, according to analysts.

The three outgoing companies will be replaced by France's luxury giant Kering (KER.FR), Germany's chemicals company Linde AG (LINU.XE) and Spain's Amadeus IT Group SA (AMS.MC), analysts said.

Write to Alberto Delclaux at [e-mail]

(END) Dow Jones Newswires

September 04, 2018 06:41 ET (10:41 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.