Rational shares slip on MDAX exit
06/03/2024 08:20
** Shares in Rational AG RAAG.DE fall 2% after the German
midcap index MDAX .MDAXI review, which will see the industrial
kitchen retailer leave the index
** Deutsche Boerse exchange operator says Rational will be
excluded from the index as of March 18, together with Vitesco
Group, while Morphosys and Bilfinger will be added
** Sebastian Kuenne, equity research analyst at RBC Capital
Markets, says the MDAX exit is a surprise, "especially since it
seems to be linked to corporate governance, rather than market
cap or trading volume"
** He however adds the event should not have a lasting
impact on the stock price: "most institutional investors ... buy
Rational for other reasons than just index membership"
** Another local analyst also points to the exclusion as the
reason behind the fall
(Reporting by Chiara Holzhaeuser)
((Chiara.Holzhaeuser@thomsonreuters.com))