Zurich (awp) – The Swiss stock market gained confidence on Tuesday as midday approached. The probable fall of the Barnier government in France seemed to have no impact on investor morale at this stage, nor did the modest rebound in inflation in Switzerland.
Ipek Ozkardeskaya reminds Swissquote that crisis means opportunities for cheap exposure to French and European assets. “Bargain hunting will keep many investors busy in the coming weeks,” predicts the Glandian online banking expert.
“The risk (French, editor’s note) is however counterbalanced by hope coming from Germany, after the breakup of the ruling coalition. Barring a major reversal, the resulting early federal elections should be won next February by the CDU/CSU, led by Friedrich Merz,” considers Olivier de Berranger, general director and head of investment at the Parisian firm La Financière de l’Echiquier.
In the meantime, capital holders were digesting a slight rebound in Swiss inflation in November to 0.7% year-on-year, notwithstanding a further drop of 0.1% in consumer prices (PCI) month-on-month. Capital holders will also be eyeing the Jolts report on vacancies in Uncle Sam’s country across the Atlantic.
As 11:00 a.m. approached, the Swiss Market Index (SMI) rose by 0.28% to 11,862.22 points, the Swiss Leader Index (SLI) by 0.33% to 1,956.28 points and the Swiss Performance Index (SPI) by 0.22% to 15,765.44 points. Of the thirty main valuations, twenty rose, eight fell and the good Roche like Swisscom had reached balance.
Swiss Life dropped another 2.8% and remained in the bottom position. The life insurer has adopted an ambitious new medium-term roadmap, placing particular emphasis on lucrative commission-based activities. Shareholders will see their dividend payout rate increase and will immediately be offered a new share buyback plan.
Sonova and Lonza (-0.9% each) completed the bottom three, both affected by analyst comments.
Zurich Insurance (-0.1%) finalized the takeover of AIG’s travel activities for just over 500 million Swiss francs, subsequently boasting of now having a leading position in this segment.
At the top of the index, the luxury brand manager Richemont (+1.6%) had widened a significant gap over the carrier of its competitor Swatch (+0.9%). Partners Group, among others, took the opportunity to step in, offering itself the Empira Group real estate platform on behalf of clients.
On the broader market, the Zealand metal forming and cutting specialist Feintool (-3.2) will close its German site in Sachsenheim, transferring part of its activities to those in Vahingen and Tokod. Two hundred jobs will be eliminated out of 450.
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