Nokia to Rejoin Euro Stoxx 50 Index as Volkswagen Loses Its Spot

Nokia Oyj is regaining its spot in the euro area’s main stock benchmark as Volkswagen AG loses its place in the latest sign of the difficulties facing the region’s automotive industry.

The Finnish mobile network-equipment maker will be added to the Euro Stoxx 50 prior to the market open on Sept. 21, index compiler Stoxx Ltd. said in an annual review of the gauge, ending a one-year exile. French utility Engie SA will also enter, while Dutch information services company Wolters Kluwer NV drops out.

Nokia shares have more than doubled in the past year as investors rewarded the company’s push into artificial intelligence and cloud infrastructure.

READ: May 26, Nokia’s 140% Rally Turns AI Comeback Into Valuation Puzzle

By contrast, VW’s demotion follows another year of weakness for the stock in the face of increasingly tough competition from China as well as cost-cutting troubles and an expensive transition to electric vehicles. Its exit leaves BMW AG, Mercedes-Benz Group AG and luxury brand Ferrari NV as the only carmakers in the Euro Stoxx 50, which was launched in February 1998.

The addition of Engie follows a near 40% gain in the stock over the past year, while Wolters Kluwer has slid along with a broader decline in stocks that may be at risk of disruption from advances in artificial intelligence. Engie raised its full-year profit forecast at the end of July with the utility firm betting on benefits from market volatility linked to the conflict in the Middle East, demand from a global artificial intelligence boom, a big UK acquisition and currency fluctuations.

The index compiler also announced changes to the broader Stoxx 600 Index on Tuesday, including the addition of Greek lenders Piraeus Bank SA and Alpha Bank SA. German airport operator Fraport and UK retailer JD Sports Fashion Plc are among those to drop out.

The growing popularity of passive funds means membership of key indexes is increasingly important for stocks, having the potential to spur higher demand from so-called index-trackers.

Read more: Aston Martin Set to Drop Out of FTSE 250 as Turnaround Splutters

This time last year, Stellantis NV, whose brands include Fiat and Jeep, dropped out of the Euro Stoxx 50 after a fraught CEO change and US tariffs added to its share-price decline.