C20 Cap-Index in historic tumble

Market falls 5.43 percent

The Danish C20 Cap-Index yesterday recorded its largest ever one-day drop, falling 5.43 percent as 87 billion kroner was wiped off the value of their shares.

DR economist Casper Schrøder contended that the development was influenced by issues in the world’s largest two markets: the US and China.

“There is a focus on the two large economies: the Chinese and American,” Schrøder told DR Nyheder. “There is grit in the economic engines in both countries, and that leads to a lot of nervousness in the stock market.”

READ MORE: Historic fall in C20 share prices due to worrying signs from China

Vestas and Genmab beatings
It is just the second time in its five-year history that the C20 Cap-Index has fallen by more than 4 percent – the previous occasion being on 24 August 2015 when the market fell by 4.65 percent.

In particular, high-risk companies such as Vestas and Genmab took the brunt of the beating. The wind turbine producer’s share price fell by 9.5 percent, while the biotech firm Genmab plummeted 11.5 percent.

The stock market in Germany and France also took a considerable tumble yesterday.

The C20 Cap-Index should not be confused with the C20 Index for Denmark’s blue chip companies. According to the membership rules of the Cap-Index, no one company can have a stock value that is equal to more than 20 percent of the index.