The global financial and economic crisis of 2008/2009 has been followed by the stock market crash of 2020. Triggered by the coronavirus pandemic, which led to massive job cuts at airlines such as Lufthansa despite extensive subsidies. The price target for solid companies such as Deutsche Wohnen was raised from 35.50 to 42.00 euros by the research firm Jefferies.

  • Deutsche Wohnen as a new DAX company in 2020
  • Lufthansa AG is no longer a DAX company in 2020

The company has moved up into the DAX (Germany's blue-chip index), while the nearly insolvent Lufthansa no longer belongs to it. The six-month performance reflects the gain in value of Deutsche Wohnen shares. The wheat is separated from the chaff on the stock market, and the upward trend of the Berlin real estate group Deutsche Wohnen, as a new DAX company, is currently continuing. In 2020, Lufthansa AG, a founding member of the DAX, is no longer listed in the DAX stock index because of the extensive state aid.

Trading turnover and market value in the 2020 stock market

Who belongs to the exclusive circle of DAX companies is determined by trading turnover (trading volume) and market value (market capitalization). In the wake of the coronavirus crisis, Lufthansa's share price collapsed, and after 32 years of DAX membership Lufthansa's spot in the index has become vacant. Lufthansa CEO Carsten Spohr regrets having lost the long-standing DAX spot in 2020. The state has stabilized Lufthansa financially, while Lufthansa is in a downward spiral with regard to current passenger numbers. Deutsche Wohnen gladly took the vacant DAX spot and now plays an important role in the top league of the stock market.

The stock market with forecasts for the second half of 2020?

Some corporate chiefs dare to look into the market's future; the sudden shutdown of 2020 led to most forecasts being quickly withdrawn. Concrete sales and profit forecasts are now hard to calculate in some industries; they depend on whether there is a second coronavirus wave in the fall with a lockdown. Many vacationers aren't deterred by travel warnings from traveling to risk areas. Increased coronavirus testing for travelers returning home is meant to minimize the risk of a second lockdown. The mood in some sectors of the economy has stabilized, and new orders, for example at cloud providers for the home office, are boosting justified optimism. Since the financial crisis of 2008/2009, some industries have posted extremely high losses: Volkswagen, for example, lost up to 2.4 billion euros, and export-strong industrial companies have also reached their limits because of the border closures.

First the slump in the stock market, then the upswing?
Reaching the pre-crisis level in the stock market isn't easy at all; the second quarter was a disaster for the majority of companies. CEOs put shareholders off for months because the coronavirus pandemic and the shutdown made forecasts difficult. A good dozen companies managed to increase profits despite the coronavirus crisis. Deutsche Telekom and Deutsche Post are among the winners. Good business in the US revived Telekom's business, while at Deutsche Post the increased online orders and deliveries led to higher sales. Optimism is spreading at companies like these, because industries that are systemically important can hold their own in the stock market.