Nokia set to rejoin Euro Stoxx 50, Volkswagen dropped
Shares of Volkswagen have dropped nearly 27% so far this year
Volkswagen shares have plummeted by nearly 27% thus far in 2021, as Europe's leading automaker grapples with Chinese competition and continues its restructuring efforts. Meanwhile, Finnish telecom equipment giant Nokia Oyj is poised to rejoin the prestigious Euro Stoxx 50 index for the first time since being excluded a year ago, according to the index provider Stoxx's annual review released on Tuesday (September 1).
Nokia's shares soared to a near-18-year high in June before experiencing a decline. However, they remain more than double their price from the same period last year, driven by the company's pivot towards selling fiber-optic equipment for firms constructing AI data centers. Meanwhile, Volkswagen's fortunes have been overshadowed by competition from China and its ongoing restructuring.
In addition to Nokia's return, French utility Engie will also be joining the index, while Dutch information-services group Wolters Kluwer will be removed. These changes are set to take effect from September 21. The Stoxx also announced a series of updates to the broader Stoxx 600 Index, including the inclusion of Greek companies such as National Bank of Greece and Alpha Bank, following the reclassification of Greek equities to "developed market" status in April.
On the flip side, JD Sports Fashion, Swedish sports and outdoor gear maker Thule Group, and Germany airport operator Fraport AG are scheduled to exit the Stoxx 600 Index.
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