LONDON/ZUG (dpa-AFX) – Following significant share price gains in recent months, German defense contractor Rheinmetall will replace luxury goods manufacturer Kering in the Eurozone's benchmark EuroStoxx 50 index later this June. The change, which had been widely anticipated, was confirmed on Monday evening in a note by JPMorgan analyst Pankaj Gupta. The adjustment takes effect from today's trading session.
For years, Rheinmetall has benefited from increasing defense spending among Western countries in response to Russia's war against Ukraine. With further multi-billion euro investments planned by countries such as Germany, investors continue to bet on robust business prospects for the company. In 2025 alone, Rheinmetall has already recorded share price gains of around 200 percent.
Since the onset of Russia's invasion of Ukraine in February 2022, Rheinmetall's market capitalization has surged roughly twentyfold to just over €80 billion. Meanwhile, luxury conglomerate Kering has been struggling with a crisis at its core brand Gucci, sending its shares into a prolonged downward spiral. Kering's market value now stands at just over €20 billion.
Index changes are particularly significant for funds that physically replicate indices, such as certain ETFs. These funds must adjust their holdings and weightings accordingly, which can in turn affect share prices./mis/zb
