Rheinmetall ousts Kering from the Euro Stoxx 50

Rheinmetall's meteoric rise on the stockmarket has propelled the German tank and ammunition manufacturer into the eurozone's main benchmark index: as from June 20, the company will replace Kering. The decision was taken by Stoxx, which manages the index, under the Fast Entry rule, which enables a stock to be included outside the usual periods. JPMorgan spotted the announcement, which was then reported by Bloomberg.

The stockmarket trajectories of Kering and Rheinmetall are diametrically opposed. The French group has been mired for several years in difficulties at its flagship brand, Gucci, exacerbated by the crisis in the luxury sector. Rheinmetall has become the darling of European fund managers since the war in Ukraine, and even more so since Germany decided to rebuild its army.

Ouch, that hurts!

Rheinmetall will be the most exposed player in the index, although Safran and Airbus are also present. The industrial company's rapid entry into the index follows a spectacular rise in its share price, which has almost tripled since the beginning of the year. Rheinmetall has a market capitalization of €83bn, while Kering is now worth only €21bn. This puts it in 38th place in the index, between its compatriots Deutsche Post and Mercedes, according to MarketScreener. Kering is, for a few days, at the bottom of the index, behind Pernod Ricard and Stellantis.

To round things up, here is our recent post on Kering in the "A hiccup in recruitment at Kering" section. And an update on Rheinmetall's latest publication.