Zurich Stock Exchange: dead calm and a little brighter red as midday approaches

Zurich Stock Exchange: dead calm and a little brighter red as midday approaches
Zurich Stock Exchange: dead calm and a little brighter red as midday approaches

Zurich (awp) – Seriously lacking in momentum for the last session of the week, the Swiss Stock Exchange fell a little deeper into the red as midday approached. The day, known as the “three witches”, could however prove to be volatile due to a significant expiry of options.

For this “three witches” day, no less than $5.5 trillion in index futures, options, stock options and ETFs will expire, says Ipek Ozkardeskaya, star analyst at Swissquote Bank. “Given that we are at psychologically crucial levels, irrationally high and mathematically overvalued, we could see surprises and reversals of position,” observes the expert.

In terms of today’s macroeconomic information, the rise in consumer prices in Japan accelerated in May (+2.5% year-on-year excluding fresh products), after slowing down in March-April. The increase in prices, slightly lower than expected, could however be misleading.

In France, the business climate remained stable in June, remaining just below its long-term average for the third consecutive month. The employment indicator, however, deteriorated. Still in France, private sector activity fell in June, for the second consecutive month, penalized by a drop in demand, against a backdrop of uncertainty linked to legislative elections, the S&P firm indicated on Friday. Global and the Hamburg Commercial Bank (HCOB).

For the entire euro zone The recovery in private sector activity has lost significant steam, with the indicator for the manufacturing sector even recording its sharpest decline in six months, according to the Flash PMI index published by S&P Global . The latter slipped to 50.8, compared to 52.2 in May, reaching its lowest level in three months.

This Friday, investors will again look at the flash PMIs in Great Britain and the United States for the month of June.

On the Swiss Stock Exchange, the SMI, after an initial decline of 0.27%, continued to widen its losses in the morning, quickly falling below the 12,100 point mark before hitting the day’s lowest around 10:30 a.m. at 12:00 p.m. .63 points. Ten minutes later, the flagship index recorded 12,030.16 points, a fall of 0.81%. The SLI fell by 0.92% to 1944.94 points and the broader SPI indicator by 0.79% to 15,991.06 points.

Among the thirty constituent stocks of the Swiss Leader Index, there were only three left, namely the heavyweight Roche (good +0.5% and bearer shares +0.4%) as well as Givaudan (+0.3% ) to gain ground. Twenty-five lost, while the good Lindt and the registered Novartis, the other main market capitalization, were standing still.

Nestlé (-07%) remained in the losing camp of the morning, the red lantern having been taken from ABB (-2.9%) by Holcim (-3%). Deutsche Bank lowered the recommendation for the Zurich electrical engineering giant’s stock to “sell”, from “hold” previously. The price target was raised to 45 Swiss francs, from 40 Swiss francs.

UBS (-2.3%) was also struggling, while Geberit (-0.7%) also joined the ranks of the losers, even though the St. Gall specialist in bathrooms and toilets made part of the launch of a new share buyback program, after having completed the one relating to the acquisition of 1.26 million of its own shares.

On the broader market, the chemist specializing in risk reactions Dottikon ES took off 2.4% after announcing a change in its shareholding, its boss and president Markus Blocher having reduced his stake to 64.74%. The son of former federal councilor Christoph Blocher has placed 75,000 shares with a “long-term” investor at a unit price of 260 Swiss francs.

vj/rr/fr

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