Two European banks dropped off Top 50 index
(4 August 2016 – United Kingdom) Two of Europe's biggest banks will be dropped from an index of Europe's top 50 blue-chip companies in a blow to Europe’s struggling banking and finance sector.
Deutsche Bank will drop off the STOXX 50 index for the first time since 1998, while Credit Suisse will also be replaced.
The decision by STOXX Ltd, which manages Europe's top benchmark stock indexes, came following a near halving in value of both lenders share prices. Deutsche shares are now more than 88 percent below their 2007 peaks.
Exclusion from a benchmark generally means that exchange-traded funds and other passive investors that track the index will be forced to sell the shares.
The two banks will be replaced by technology firm ASML Holding (ASML.AS) and construction company Vinci in the STOXX Europe 50 index .STOXX50. STOXX Ltd, which operates Deutsche Boerse Group's index business, said that the changes will become effective from 8 August 2016.
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