HOW DAX 30 COMPANIES IS PERFORMING UNDER UNPRECEDENTED CIRCUMSTANCE SURROUNDING COVID-19

HOW DAX 30 COMPANIES IS PERFORMING UNDER UNPRECEDENTED CIRCUMSTANCE SURROUNDING COVID-19

Free $100 Forex No-Deposit Bonus

DAX STOCK

Before giving you a clear picture of what goes on DAX 30 companies, it’s very crucial to start by addressing the economic elephant that is affecting almost every business, this is COVID-19 popularly known as coronavirus. DAX 30 companies have been fairing well until the arrival of this great pandemic which has had a huge impact on the stock market plunge wiping trillions of dollars away from the companies and in market caps indices all across the globe.

In mid-march of the year 2020, during the time many countries started to hike up their responses regarding the spread of the pandemic, DAX companies experienced a huge loss, as that was the worst trading week that the company has ever experienced since the time it was started. The company lost about 10% of value in just a single week and it closed at a major low of 7990, this occurred on March 19. This was a dramatic drop in DAX index history.

In turn, not all businesses have been equally affected by this pandemic’s stocks scare. Some of the companies have become even more resilient depending on their industry and how weak the industry is about COVID-19 disruption. The most hit companies are the tourism and travel industries. Lufthansa the largest airline in Germany, and DAX 30 member since its inception, in mid-march 2020 had a huge loss of 41% of the company’s value. This made the most affected firm on the index.

Still, other companies are also suffering due to coronavirus. Another example is Deutsche Bank AG, which represents other huge financial institutions across the globe; its share price became low throughout March. The financial institution is suffering due to several reasons, one of the main reasons is that some of the investors are dropping out from private banks and breaking into safer options like treasury bonds that are government-backed.

But, pharmaceutical giants such as Merck and Bayer who are DAX 30 members have not been hit by the outbreak of the coronavirus. Regardless of huge declines in mid-March of the year 2020, the 2 companies rebounded very quickly and look set to move on in good shape. The main advantage of these two companies is that they trade key medical products such as antibiotics, antiviral drugs, biotechnologies, and vaccines that are in huge demand during this pandemic.

Companies concentrating on digital services providers such as SAP, Wirecard, and Deutsche Telecom, will be able to run major areas of their recent operations. But, industries focusing on physical manufacturing and export, this includes Infineon, BMW, and Beiersdorf will suffer due to social distancing measures.

At this particular moment, DAX companies will take its difficult to say what steps when the crisis unfolds.

Copyright © 2020. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.