German builder Hochtief to join benchmark DAX index

German construction group Hochtief is set to join Germany's benchmark DAX stock index for the first time later this month, replacing Porsche Automobil Holding SE, the largest shareholder in carmaker Volkswagen.

The change, announced by index provider STOXX on Wednesday, will take effect on June 22. Porsche SE will move to the MDAX index, which tracks medium-sized German companies.

Analysts said Hochtief's promotion was widely expected after a strong run in its shares over recent months. The company has benefited from growing investment in data centres, large infrastructure spending programmes and rising defence expenditure in many countries.

The DAX is Germany's main stock market index and is reviewed quarterly. Changes are particularly important for investment funds that track the index, as they must adjust their holdings accordingly, sometimes affecting share prices.

Other changes to the MDAX include the addition of semiconductor companies Elmos Semiconductor, Siltronic and Suss Microtec.

Meanwhile, online pharmacy operator Redcare Pharmacy, advertising company Ströer and forklift maker Jungheinrich will move from the MDAX to the SDAX index of smaller listed companies.