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 STOXX Europe 600 Index is a benchmark index with a fixed number of 600 components representing large, mid and small capitalization companies across 17 countries of the European region.</li>
<li>The EURO STOXX Index is a subset of the STOXX Europe 600 Index and is also the parent index for the widely-tracked EURO STOXX 50 Index.</li>
<li>Below is a look at the Potential Adds and Deletes for the STOXX Europe 600 Index and the EURO STOXX Index in the upcoming index review in June 2022.</li>
</ul>


The STOXX Europe 600 Index is a benchmark index with a fixed number of 600 components representing large, mid and small capitalization companies across 17 countries of the European region.
The EURO STOXX Index is a subset of the STOXX Europe 600 Index and is also the parent index for the widely-tracked EURO STOXX 50 Index.
Below is a look at the Potential Adds and Deletes for the STOXX Europe 600 Index and the EURO STOXX Index in the upcoming index review in June 2022.


STOXX Europe Indices: Quiddity Leaderboard for June 2022 Rebalance

European Event-Driven Analyst

Jesus Rodriguez Aguilar

Event-Driven

<ul>
<li>On 1 February, Siltronic announced that the public tender offer by GlobalWafers will not be completed as offer conditions have not been fulfilled within the applicable deadline.</li>
<li>Germany's Economy Ministry could not complete all the necessary review steps. The deal rationale was compelling. Wacker Chemie still intends to sell its remaining 30.83%. GlobalWafers may bid again.</li>
<li>As the industry deals with overcapacity, Siltronic could be worth more as a standalone business. Longer term, TP is €162.64/share (comparables based), 12% above Siltronic's offer</li>
</ul>


On 1 February, Siltronic announced that the public tender offer by GlobalWafers will not be completed as offer conditions have not been fulfilled within the applicable deadline.
Germany's Economy Ministry could not complete all the necessary review steps. The deal rationale was compelling. Wacker Chemie still intends to sell its remaining 30.83%. GlobalWafers may bid again.
As the industry deals with overcapacity, Siltronic could be worth more as a standalone business. Longer term, TP is €162.64/share (comparables based), 12% above Siltronic's offer


Globalwafers/​Siltronic: There Is Still Value in Siltronic

<ul>
<li>Both Siltronic and Globalwafers expected the transaction to be completed in H2 2021, which has not yet happened. The closing remains subject to receipt of further regulatory approvals.</li>
<li>The deal has to be renegotiated if China and Germany do not approve the deal by 31 January (although Siltronic expects this to happen), in the context of strong growth.</li>
<li>
Gross spread at the closing share price on 28 December is 3.1%. Recommendation is long WAF GR. There is the possibility of further upside in case of terms renegotiation.</li>
</ul>


Both Siltronic and Globalwafers expected the transaction to be completed in H2 2021, which has not yet happened. The closing remains subject to receipt of further regulatory approvals.
The deal has to be renegotiated if China and Germany do not approve the deal by 31 January (although Siltronic expects this to happen), in the context of strong growth.

Gross spread at the closing share price on 28 December is 3.1%. Recommendation is long WAF GR. There is the possibility of further upside in case of terms renegotiation.


Globalwafers/Siltronic: Possibility of Terms Renegotiation

<ul>
<li>The European Benchmark Indices (BMI) of the STOXX Index family are reviewed on a quarterly basis in March, June, September and December. </li>
<li>In <a href="https://www.smartkarma.com/insights/stoxx-europe-indices-quiddity-leaderboard-for-december-2021-rebalance" target="_blank" data-smartkarma-citation="insights:58845" rel="noopener">STOXX Europe Indices: Quiddity Leaderboard for December 2021 Rebalance</a>, we looked at potential adds and deletes for the December 2021 review for STOXX Europe 600 and EURO STOXX Indices. </li>
<li>With official rebalance results to be announced in a few days, below is an update on the evolution of this Leaderboard. </li>
</ul>


The European Benchmark Indices (BMI) of the STOXX Index family are reviewed on a quarterly basis in March, June, September and December. 
In STOXX Europe Indices: Quiddity Leaderboard for December 2021 Rebalance, we looked at potential adds and deletes for the December 2021 review for STOXX Europe 600 and EURO STOXX Indices. 
With official rebalance results to be announced in a few days, below is an update on the evolution of this Leaderboard. 


STOXX Europe Indices: Quiddity Leaderboard for December 2021 Rebalance 2.0

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

iShares MSCI ACWI ETF / Technical Analysis

<ul>
<li>Market dynamics remain healthy and we are continuing to see signs that suggest global equities are entering a new broad-based bull market.</li>
<li>Led by strength from the US, the MSCI ACWI index (ACWI-US) recently broke out to new highs above the key $105.40 resistance level, a bullish sign for global equities.</li>
<li>Global sovereign yields have moved lower in recent weeks. We expect rates to find support near current levels, creating an opportunity to add to value Sectors.</li>
</ul>


Market dynamics remain healthy and we are continuing to see signs that suggest global equities are entering a new broad-based bull market.
Led by strength from the US, the MSCI ACWI index (ACWI-US) recently broke out to new highs above the key $105.40 resistance level, a bullish sign for global equities.
Global sovereign yields have moved lower in recent weeks. We expect rates to find support near current levels, creating an opportunity to add to value Sectors.


MSCI ACWI Breaking To New Highs; Buying Financials, Consumer Discretionary, Industrials, Materials

Germany

Wacker Chemie AG is a globally active chemical company with a wide range of specialty chemical products. The Company's products include hyperpure polysilicon for the electronics and solar industries, semiconductor wafers, a broad range of silicones, vinyl acetate based polymers, and biotech products.

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Wacker Chemie AG (WCH GR)

STOXX Europe Indices: Quiddity Leaderboard for June 2022 Rebalance

A look at the Potential Adds and Deletes for the STOXX Europe 600 Index and the EURO STOXX Index in the upcoming index review in June 2022.

Janaghan Jeyakumar, CFA

Globalwafers/Siltronic: There Is Still Value in Siltronic

Siltronic announced that the public tender offer by GlobalWafers will not be completed as offer conditions have not been fulfilled within the...

Jesus Rodriguez Aguilar

Globalwafers/Siltronic: Possibility of Terms Renegotiation

In the context of strong growth for the semis, the offer price is looking increasingly cheap. If German and Chinese regulators do not clear the...

Jesus Rodriguez Aguilar

STOXX Europe Indices: Quiddity Leaderboard for December 2021 Rebalance 2.0

Discussion on the potential ADDs and DELETEs for STOXX Europe 600 and EUROSTOXX Indices for December 2021 and a look at potential trading...

Janaghan Jeyakumar, CFA

MSCI ACWI Breaking To New Highs; Buying Financials, Consumer Discretionary, Industrials, Materials

Global sovereign yields have moved lower in recent weeks. We expect rates to find support near current levels, and recommend adding exposure to...

Vermilion Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

STOXX Europe Indices: Quiddity Leaderboard for June 2022 Rebalance

A look at the Potential Adds and Deletes for the STOXX Europe 600 Index and the EURO STOXX Index in the upcoming index review in June 2022.

Janaghan Jeyakumar, CFA

Globalwafers/​Siltronic: There Is Still Value in Siltronic

Siltronic announced that the public tender offer by GlobalWafers will not be completed as offer conditions have not been fulfilled within the...

Jesus Rodriguez Aguilar

Globalwafers/Siltronic: Possibility of Terms Renegotiation

In the context of strong growth for the semis, the offer price is looking increasingly cheap. If German and Chinese regulators do not clear the...

Jesus Rodriguez Aguilar

STOXX Europe Indices: Quiddity Leaderboard for December 2021 Rebalance 2.0

Discussion on the potential ADDs and DELETEs for STOXX Europe 600 and EUROSTOXX Indices for December 2021 and a look at potential trading...

Janaghan Jeyakumar, CFA

MSCI ACWI Breaking To New Highs; Buying Financials, Consumer Discretionary, Industrials, Materials

Global sovereign yields have moved lower in recent weeks. We expect rates to find support near current levels, and recommend adding exposure to...

Vermilion Research

Globalwafers/Siltronic: There Is Still Value in Siltronic