Zurich (awp) – The Swiss stock market started the week in scattered order close to balance. The corporate news front remained quiet as the end-of-year holiday break looms.
In New York, Wall Street was moving in the green in the morning.
“The attention (of investors) is mainly focused on the monetary policy decision of the American Federal Reserve,” noted Andreas Lipkow, independent analyst. According to the majority of observers, the institution should announce a further reduction in its rates of a quarter of a percentage point for its last meeting of the year.
In Switzerland, the consensus of economists from the KOF institute expects GDP growth of 1.4% this year and inflation of 1.1%. In 2025, GDP should slow to +1.3% and consumer prices to 0.6%.
The number of hotel nights increased by 6.1% in November compared to the same month a year earlier based on a first estimate from the Federal Statistical Office. The sector could surpass the annual record reached in 2023.
The SMI ended up 0.06% at 11,701.51 points, with a low of 11,644.53 and a high of 11,708.86. The SLI nibbled 0.01% to 1938.48 points and the SPI lost a tiny 0.01% to 15,580.15 points. Of the 30 star stocks, nine rose, 18 fell and three (Schindler, Swisscom and Zurich Insurance) finished in balance.
Lonza (+2.4%) leads the pack of winners, followed by Roche (+1.2%) and Partners Group (+0.8%),
The supplier to the pharmaceutical industry benefited from an increase in recommendation to “buy” from “hold” by Stifel which also significantly increased the price target to 625 from 565 Swiss francs.
Roche has obtained authorization from the regulator Swissmedic for a new presentation of its flagship ophthalmic treatment Vabysmo (faricimab) in a pre-filled syringe.
Novartis (+0.3%) also supported the index.
Swatch Group (-2.7%) finished bottom, behind Logitech (-2.1%) and Nestlé and the good Lindt (each -1.0%).
The Bienne watchmaker probably suffered from the slowdown in retail sales in China in November. Its Geneva competitor Richemont (-0.6%) also underperformed.
The Vevey giant was penalized by a new disappointment in France. Its subsidiary Nestlé Waters must consider ending the production of natural mineral water Perrier, in the south of France, due to health risks, according to a confidential report revealed by the French newspaper Le Monde and Radio France.
SGS (-0.04%) has acquired, for an undisclosed amount, the Friborg start-up CertX and its ten employees.
Holcim (-0.8%) ended its share buyback program initiated in mid-March, collecting 12.2 million of its own shares, or 2.1% of the share capital, for 1 billion francs Swiss.
In the broader market, industrial baker Aryzta (-1.2%) increased its sales volumes during the year, but had to lower prices as inflation fell. His boss Urs Jordi intends to remedy this. “We no longer grant price reductions, because most raw materials have not become cheaper, some are even more expensive,” he explained to AWP.
The pharmaceutical laboratory Basilea (+4.6%) has concluded an agreement with the American company Innoviva Specialty Therapeutics for the marketing of the antibiotic Zevtera in the United States. Basel will receive an initial payment of $4 million, tiered royalties on net sales of between 15 and 25 percent and sales milestone payments of up to $223 million.
The dermatological laboratory Galderma (+4.9%) benefited from an increase in recommendation to “buy” from “neutral” by UBS analysts who also raised the price target to 102 from 85 Swiss francs. The group also obtained approval from the United States Medicines Agency (FDA) for Nemluvio (nemolizumab) to treat atopic dermatitis.
The Zougois pharmaceutical subcontractor Polypeptide (+7.5%) announced the commissioning of its new solid peptide synthesis line in Braine l’Alleud, south of Brussels.
The railway equipment manufacturer Stadler Rail (-0.6%) will deliver 17 electric freight locomotives to Lithuania as part of a contract with Lietuvos geležinkeliai (LTG) providing an option for 17 additional machines.
The cybersecurity specialist Wisekey (+107.7%) grew significantly. The launch of the satellite from Wisesat.space, a subsidiary of the Geneva-based cybersecurity specialist, is scheduled for January 14.
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