Index Rebal Trades & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal Trades & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Index Rebalance

<ul>
<li>The March 2023 regular rebalance index changes for the SE600 index and the EUROSTX index were announced yesterday. </li>
<li>There are 8 ADDs/DELs for the SE600 index and 5 ADDs and 2 DELs for the EUROSTX index.</li>
<li>In this insight, we take a closer look at the index flow expectations and the historical performance of SE600 and EUROSTX Rebalance events.</li>
</ul>


The March 2023 regular rebalance index changes for the SE600 index and the EUROSTX index were announced yesterday. 
There are 8 ADDs/DELs for the SE600 index and 5 ADDs and 2 DELs for the EUROSTX index.
In this insight, we take a closer look at the index flow expectations and the historical performance of SE600 and EUROSTX Rebalance events.


SE600 Mar 23 Rebal: Final Changes and Historical Performance Analysis

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

<p>Broad global indexes (MSCI ACWI, ACWI ex-US, EAFE, and EM) were able to shrug off recent news of a more contagious Covid variant that popped-up in the UK. Additionally, Covid fears have done nothing to derail ongoing positive market dynamics. As long as support levels hold and market dynamics remain positive, our outlook remains bullish and we continue to view any weakness as a buying opportunity. Actionable Themes in today's report: Services, Technology, Manufacturing, and Materials.</p>

Broad global indexes (MSCI ACWI, ACWI ex-US, EAFE, and EM) were able to shrug off recent news of a more contagious Covid variant that popped-up in the UK. Additionally, Covid fears have done nothing to derail ongoing positive market dynamics. As long as support levels hold and market dynamics remain positive, our outlook remains bullish and we continue to view any weakness as a buying opportunity. Actionable Themes in today's report: Services, Technology, Manufacturing, and Materials.

Global Equity Strategy: Support Levels Holding; Bullish Outlook Intact

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

<div><p><a href="https://www.smartkarma.com/entities/nanofilm-technologies-international" target="_blank" data-smartkarma-citation="entities:29700:1" rel="noopener">Nanofilm Technologies International (NTI SP)</a> designs, manufactures, and assembles its proprietary coating equipment (and auxiliary equipment and spare parts), and develops and provides its surface solutions and advanced materials in-house. At the proposed IPO price of S$2.59 per share, Nanofilm will have a market cap of S$1.7 billion ($1.3 billion). Nanofilm will raise proceeds of S$470 million ($346 million) with primary/secondary spilt of 42.5%/57.5%. Thirteen cornerstone investors will subscriber for 104.3 million of the offer shares.  </p></div><div><div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/nanofilm-technologies-ipo-initiation-layer-by-layer" target="_blank" rel="noopener">our initiation note</a>, we highlighted that Nanofilm is an attractive growth story underpinned by proprietary technology, growing addressable markets, high customer stickiness, attractive margin profile and strong cash conversion. Our valuation analysis suggests that the IPO valuation is attractive. </p></div></div></div>

Nanofilm Technologies International (NTI SP) designs, manufactures, and assembles its proprietary coating equipment (and auxiliary equipment and spare parts), and develops and provides its surface solutions and advanced materials in-house. At the proposed IPO price of S$2.59 per share, Nanofilm will have a market cap of S$1.7 billion ($1.3 billion). Nanofilm will raise proceeds of S$470 million ($346 million) with primary/secondary spilt of 42.5%/57.5%. Thirteen cornerstone investors will subscriber for 104.3 million of the offer shares.  In our initiation note, we highlighted that Nanofilm is an attractive growth story underpinned by proprietary technology, growing addressable markets, high customer stickiness, attractive margin profile and strong cash conversion. Our valuation analysis suggests that the IPO valuation is attractive. 

Nanofilm Technologies IPO: Valuation Insights

Shanghai Stock Exchange Composite Index / Technical Analysis

<p>Geopolitical concerns aside, a weakening US dollar (DXY) continues to be a major tailwind for both EM equities and the commodity Sectors. Improving price and RS trends for these risk-on areas of the market are among the many characteristics consistent with historical bull markets. Therefore, we continue to label this a bull market and we believe global equities are still in the early innings of a broad-based advance. Commodity Sectors make up a majority of our EM-focused recommendations in this report.</p>

Geopolitical concerns aside, a weakening US dollar (DXY) continues to be a major tailwind for both EM equities and the commodity Sectors. Improving price and RS trends for these risk-on areas of the market are among the many characteristics consistent with historical bull markets. Therefore, we continue to label this a bull market and we believe global equities are still in the early innings of a broad-based advance. Commodity Sectors make up a majority of our EM-focused recommendations in this report.

EM Remains In Favor; Shanghai Comp Breaking Out

TSE Tokyo Price Index TOPIX / Technical Analysis

<p style="text-align: justify;">In this report we highlight attractive and actionable themes within developed int’l markets: Technology and Industrials continue to be two of the most attractive Sectors globally -- overweight. These two Sectors account for half of today’s individual recommendations Countries that are (1) developing positively in terms of price and RS and (2) have significant representation in this report include: Japan (<strong>TOPIX</strong>), Switzerland (<strong>SMI</strong>), and France (<strong>CAC 40</strong>).</p><p style="text-align: justify;">Outside of the above themes, a bottoms-up approach is required to uncover attractive and actionable stocks. On page 4 we include a table of all stocks highlighted in this report<em>. </em></p>

In this report we highlight attractive and actionable themes within developed int’l markets: Technology and Industrials continue to be two of the most attractive Sectors globally -- overweight. These two Sectors account for half of today’s individual recommendations Countries that are (1) developing positively in terms of price and RS and (2) have significant representation in this report include: Japan (TOPIX), Switzerland (SMI), and France (CAC 40).Outside of the above themes, a bottoms-up approach is required to uncover attractive and actionable stocks. On page 4 we include a table of all stocks highlighted in this report. 

Overweight Global Technology & Industrials

United Kingdom

Victrex plc manufactures and sells a thermoplastic, under the trade mark PEEK. Their PEEK products are used primarily by compounders and processors, in order to manufacture products in a range of industrial applications.

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Victrex PLC (VCT LN)

SE600 Mar 23 Rebal: Final Changes and Historical Performance Analysis

The SHORT DELs - LONG Index trade seems interesting as historically the DELs have strongly outperformed the index from announcement to exclusion.

Janaghan Jeyakumar, CFA

Global Equity Strategy: Support Levels Holding; Bullish Outlook Intact

As long as support levels hold and market dynamics remain positive, our outlook remains bullish and we continue to view any weakness as a buying...

Vermilion Research

Nanofilm Technologies IPO: Valuation Insights

Nanofilm will raise proceeds of S$470 million ($346 million) with primary/secondary spilt of 42.5%/57.5%. Our valuation analysis suggests that the...

Arun George

EM Remains In Favor; Shanghai Comp Breaking Out

Geopolitical concerns aside, a weakening US dollar (DXY) continues to be a major tailwind for both EM equities and the commodity Sectors. Improving...

Vermilion Research

Overweight Global Technology & Industrials

In this report we highlight attractive and actionable themes within developed int’l markets: Technology and Industrials continue to be two of the...

Vermilion Research

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