Zurich (awp) – The Swiss stock market ended on a negative note on Friday. After an initial high above 11,900 points, the SMI headed towards the cellar and finished a little below the 11,800 points mark. Investors are worried about the political crisis in Germany. In Switzerland, Richemont took the spotlight after the publication of the half-year results.
“This crisis hits Germany at a critical economic time, with the country grappling with a prolonged recession, high energy costs and competition from China, while military and infrastructure needs remain pressing. The collapse of the coalition could fuel discontent among traditional parties and strengthen far-right movements,” commented analyst John Plassard of Mirabaud Banque.
In New York, Wall Street moved in disorganized order in the morning, catching its breath after a crazy week marked by the presidential election and a new rate cut from the American central bank (Fed).
“We will probably be treated to a mixed session,” warned Peter Cardillo of Spartan Capital. “The weekend is approaching and the week has been busy with the election, the results, the Fed,” lists the analyst. “The market has made a big jump higher and traders are taking a little break.”
In Switzerland, the consumption outlook remains bleak. In October, the situation deteriorated slightly compared to the previous month, according to figures from the State Secretariat for Economic Affairs (Seco).
The SMI ended down 1.00% at 11,797.72 points, with a low of 11,775.75 points and a high of 11,932.08 points. The SLI lost 0.99% to 1942.28 points and the SPI 0.85% to 15,731.13 points. Of the 30 star stocks, 22 fell and 8 advanced.
Swatch (-7.8%) finished bottom, behind Richemont (-6.6%) and Adecco (-2.8%).
The Geneva luxury group recorded a decline in performance in the first half of 2024/25 of its staggered financial year ending at the end of September. Turnover contracted 1% to 10.08 billion euros and operating profit plunged 17% to 2.21 billion. In the wake of this data, Jefferies raised its price target and confirmed “buy”. The analyst considers the Genevan company to be one of the best positioned in the sector.
Heavyweights Roche (-1.0%), Nestlé (-0.6%) and Novartis (-0.2%) fell more or less significantly.
Following its good figures over nine months, Zurich Insurance (-1.0%) did not benefit from an increase in its price target by LBBW, which confirmed its “sell” recommendation. The data did not surprise the analyst who considers the stock too highly valued, hence his recommendation to sell.
The winning camp is led by the good Lindt (+1.1%), ahead of SGS (+1.0%) and Sonova (+0.9%).
Kepler Cheuvreux analysts raised the hearing aid specialist’s price target to 270 from 250 Swiss francs, but kept the recommendation at “reduce”. At the investor day, management made it clear that half-year results would be weak. Intense competition has led to considerable pricing pressure, which is weighing on sales and margins, the analyst commented.
Alcon (+0.5%) also gained ground, before the publication of its quarterly results on Tuesday evening. Analysts surveyed by AWP expect sales to rise to $2.47 billion and an operating margin to rise to 13.7%.
On the broader market, the Bernese energy company BKW (-0.9%) presented its medium-term roadmap, including 4 billion Swiss francs in investments over the next six years. The efforts made should increase the operating surplus (Ebit) to 1 billion Swiss francs by 2030, compared to 700 to 800 million estimated for the year which is ending.
The Bernese Cantonal Bank (-1.3%) deplored the decision of its head of Service Management and member of the general management, Mark Haller, to leave the establishment at the end of the year. A recruitment procedure was launched to fill his chair.
Cicor (+0.4%) acquired the Swedish Nordic Engineering Partner (NEP) for an undisclosed amount. The group with its origins in Neuchâtel is also negotiating the acquisition of another unidentified player in this sector in Germany.
DKSH (+1.2%) won a contract with the Australian-Singaporean company Osteopore Limited to distribute in Singapore its products used for the treatment of bone loss. The amount of this multi-year contract has not been revealed.
Züblin (-0.7%) managed to boost its net profit in the first half (ended at the end of September), thanks to the effects of revaluations. Rental income has also improved.
rp/al
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