DAX 30 - Earnings Season, Q3 2016

[Kiril Zagorski]

I. Overview

The DAX is a blue chip stock market index consisting of the 30 major German companies trading on the Frankfurt Stock Exchange. DAX is a capitalization-weighted index which means that individual components are weighted according to their total market capitalization. The larger components carry higher percentage weightings, while the smaller components in the index have lower weights. This type of index is also known as a market value-weighted index. Historically, the Germany DAX 30 Stock Market Index reached an all-time high of 12 374.73 in April of 2015 and a record low of 372.30 in November of 1974. Table below shows the components of DAX and various important data such as Market Capitalization, Annual Revenues for 2015, Average Volume for the last 3 months, Weight in DAX and the stock's sector.

Table: DAX – the data is valid as of 14th Oct, 2016.



II. DAX - sector classification and weights:

The table below shows DAX which is broken down into Sectors. Table 1: DAX by Sectors (as of 14th Oct, 2016)  



Pie Chart: DAX by Sectors (as of 14th Oct, 2016)



III. Fundamental reasons to move the market during October and November: Earnings Season Q3 2016

Earnings Announcements for Q3 2016 is a major stock price driver in both directions – up and down, if the reported results miss the expectations of the analysts and the market. Below is a table where can be found a list of all DAX companies and the release dates for their interim earnings reports as of Q3 2016 along with the current weight in the index. This is important since the higher weight a stock has got in the index, the more impact on the index price can have. Table: DAX 30 companies (Q3 2016 reports – release date):  



Week 17-21 October (Medium to Heavy Impact):

EPS - earnings per share

SAP AG – 21.10.2016 (Friday) – 0.954/share, expected EPS

Daimler AG – 21.10.2016 (Friday) – 2.238/share, expected EPS

Next week on Friday, 21th Oct, will be released the quarter results for two major companies from DAX – SAP AG and Daimler AG, which account for about 16.1% of the index price. The expected EPS for SAP is 0.954 euro/share, whereas 2.238 is the expected EPS for Daimler AG. We may see higher/lower stocks’ prices if the reported results are higher/lower than the analysts' expectations.

Week 24-28 October (Heavy impact on DAX):

Merck – 25.10.2016 (Tuesday) – 0.89/share, expected EPS

Bayer AG - 26.10.2016 (Wednesday) – 1.653/share, expected EPS

Volkswagen AG VZO - 26.10.2016 (Wednesday) – 4.466/share, expected EPS

BASF SE - 27.10.2016 (Thursday) – 0.978/share, expected EPS

Fresenius ST - 27.10.2016 (Thursday) – 1.04/share, expected EPS

Fresenius SE- 27.10.2016 (Thursday) – 0.76/share, expected EPS

Deutsche Bank AG - 27.10.2016 (Thursday) – 0.335/share, expected EPS

Deutsche Boerse Z.UMT. - 27.10.2016 (Thursday) – 1.067/share, expected EPS

Linde AG - 28.10.2016 (Friday) – 1.713/share, expected EPS

During the week of 24-28 October, 8 companies from DAX will release their Q3 ’16 reports which will have a heavy impact over the index price since the total weight of these 8 companies is 31.1%.  There won't be reports which are about to be released by some of the DAX companies on 31th Oct, 2016.

[Shaikh]

My target for Dax is 10375 within two three days, if today DOW JONES breaks 18050 level then definitely it will touch 17725. So if you have long position put strict stoploss @18025.

Keep smiling, happy trading and most important be safe....

[oficertito]

hi great job, thanks

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