Wacker Chemie AG, Europe’s largest producer of polysilicon, jumped the most in five months after the spot price for the substance climbed to the highest since October 2012.
Wacker Chemie gained as much as 6.7 percent, the steepest intraday increase since July 30, and was trading up 5.9 percent at 84.71 euros at 1:25 p.m. in Frankfurt. The stock, which is at the highest price since February 2012, has risen 58 percent in the past 12 months, valuing the company at 4.4 billion euros ($6 billion).
The average spot price for polysilicon used in solar cells rose 2.3 percent from a week earlier to $19.38 per kilogram, PV Insights said on its website. That extended the previous week’s 4 percent increase to reach the 14-month high.
“Primarily the stock’s gain is to do with the polysilicon prices,” Stefan Freudenreich, a Frankfurt-based analyst at Equinet AG who recommends selling Wacker shares, said by telephone. “Deutsche Bank also published a study in the past few days in which they were very bullish about the Chinese solar market.”
Wacker has forecast that revenue in 2013 would fall about 3 percent to 4.5 billion euros. While a compromise in a solar-industry dispute between the European Union and China boosted polysilicon demand, selling prices for the solar-panel components stayed low, Chief Executive Officer Rudolf Staudigl said in October. The Munich-based company is scheduled to release its annual report in March.
Wacker Chemie is majority-owned by the founding family’s holding company, Dr. Alexander Wacker Familiengesellschaft mbH.