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TWO HOPEFULS VIE FOR DAX 40 PRESTIGE

On Frankfurt's trading floors, the next DAX reshuffle is shaping up like a tale of two trajectories- one company soaring into the index on the back of a blockbuster rally, another trying to claw its way back after a pandemic-era fall from grace.

As the June review of the DAX 40 .GDAXI index approaches, the spotlight is on two very different contenders. Construction heavyweight Hochtief HOTG.DE , riding a stunning rally over the past year, looks poised for its first-ever entry into Germany's premier equity index.

Its ~184% surge in an year has been fuelled by booming infrastructure demand, particularly tied to defence spending and the rapid buildout of data centres, two of the most powerful investment themes shaping Europe's economy today.

In contrast, Lufthansa's LHAG.DE story carries a sense of unfinished business. Once a DAX mainstay for over three decades, the airline exited during the COVID-19 crisis in 2020.

Since then, it has repeatedly come close to reclaiming its spot. This time again, the gap is razor-thin, with only days left for its stock performance to tip the balance. It's a tight race-one that could hinge on market sentiment in the final stretch.

At the other end, Zalando ZALG.DE and Porsche Holding PSHG_p.DE face the risk of relegation if newcomers break through, highlighting the fragile position of consumer and auto-linked names in a shifting market environment.

Analysts at Deutsche Bank say Hochtief is "very likely" to secure a DAX spot given its ranking buffer, while Lufthansa remains just shy of the entry threshold but still within striking distance if its shares gain in the coming days.

Beyond stock-specific moves, the reshuffle underscores a broader economic pivot that capital is increasingly flowing toward infrastructure and industrial plays, even as legacy sectors struggle to regain momentum.

(Rashika Singh)

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FOR WEDNESDAY'S OTHER LIVE MARKETS POSTS:

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EUROPE BEFORE THE BELL: INFLATION WORRIES PERSIST, NVIDIA LOOMS CLICK HERE

AS STOCKS SLUMP, CUE NVIDIA CLICK HERE