Zurich (awp) – As midday approached Monday, the SMI continued to move in the green, even settling beyond the 12,200 point mark. The values of the Swiss luxury giants, Swatch and Richemont, however, suffered from disappointing announcements from the Chinese government to revive the country’s economy.
In China, the government now wants to respond to high public debt and distortions in the real estate market with a multi-billion dollar aid plan.”For the first time in a long time, the Chinese government seems determined to act against the symptoms of crisis However, the measures adopted so far do not yet offer a lasting solution to the structural problems facing China,” commented Jan Viebig, head of investments at Oddo BHF bank.
In Switzerland, producer and import prices fell in September in monthly, but especially annual, comparison. The relative index fell by 0.1% compared to August, standing at 107.2 points, thanks to the decline in the prices of petroleum products. Conversely, hydrocarbons and food products have increased in price. Over one year, the drop reached 1.3%, according to figures published Monday by the Federal Statistical Office (FSO).
On the Swiss Stock Exchange, the flagship SMI index rose around 11:00 a.m. by 0.5% to 12,215.81 points. The SLI did the same, gaining 0.5% to 1997.94 points. The SPI for its part increased by 0.4% to 16,276.25 points. Of the thirty star stocks, twenty-five advanced, three retreated and two reached equilibrium (Sonova and Julius Bär).
Givaudan (+1.2%) took the provisional lead in the ranking. The Geneva-based manufacturer of flavors and perfumes has strengthened its presence in Southeast Asia with the construction of a new factory in Indonesia, where it already has a site, in order to meet growing demand.
UBS (+1.1%) and Logitech (+0.9%) completed the podium.
Roche (+0.6%) was also gaining ground. The Basel laboratory presented new, positive results on Monday on its Evrysdi treatment against spinal muscular atrophy (SMA).
Julius Bär (-0.2%), SIG Group (-1.1%) and Richemont (-1.5%) fell to the bottom of the ranking.
Swatch (-2.8%) was left behind. Disappointed hopes regarding China, where the government has remained vague on the scale and timing of economic recovery measures, are responsible for the collapse of the shares of the two Swiss luxury giants, according to analysts.
On the broader market, Bossard (-8.6%) continued to suffer after the announcement of its quarterly results. The Zug specialist in fastening systems saw its sales fall by 3.8% to 240.4 million Swiss francs in the third quarter of 2024. According to Vontobel analysts, these results “will not give rise to upward fantasies on the price of action. Significant short-term positive catalysts are still lacking. They therefore recommend “maintaining” the title.
Carlo Gavazzi followed the same downward trend, collapsing -5.1%.
On the other hand, Kudelski shares soared, up 9%. Its subsidiary Nagravision has sealed a new partnership in the field of streaming with the Indian company providing user management solutions Evergent.
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