The Swiss stock market opened in a mixed manner on Wednesday. Investors are waiting for the announcements of the Federal Reserve (Fed), which is due to deliver the conclusions of its monetary policy meeting in the evening. A rate cut of 25 or even 50 basis points is expected.
“I remain convinced that a 25 basis point cut would be the best option given the current lackluster economic figures,” notes Ipek Ozkardeskaya, an analyst at Swissquote. However, for fear of disappointing the market too much, the Fed could go further in the cut. “We are also starting to hear that some Democrats are adding fuel to the fire by asking for a 75 basis point cut,” the specialist continued.
At around 09:08, the SMI gained 0.06% to 12,049.5 points while the SLI fell by 0.09% to 1,961.32 points. The SPI advanced by 0.01% to 16,023.71 points. Of the thirty leading stocks, twelve advanced, seventeen declined and one (Geberit) was stable.
Lonza (-2.0%) was the provisional red lantern, just behind Sonova (-1.1%). Barclays lowered the hearing aid manufacturer’s recommendation to “equal weight”, from “overweight”. The target was revised to 310 francs, from 320 francs. The low potential due to the high share price is cited to justify the decision.
VAT Group (-0.8%) completed the trio of biggest losers.
Partners Group (-0.4%) has entered into a new partnership with Italian investment bank Mediobanca Private Banking. Through this agreement, clients of this division of Mediobanca will be able to access Partners Group’s investments in private markets.
Heavyweights Nestlé (+0.3%), Novartis (+0.4%) and Roche (bearer: +0.3%, dividend certificate +0.6%) supported the indices.
Excluding SMI, Meyer Burger (+6.8%) is finalizing its latest restructuring announced less than a month ago. The struggling Bernese solar cell manufacturer will cut nearly 200 jobs by the end of 2025, or a fifth of its approximately 1,050 employees. Managing Director Gunter Erfurt is leaving the company, replaced with immediate effect by Chairman of the Board of Directors Franz Richter.
Hochdorf (no pre-market price) is holding an extraordinary general meeting. Shareholders will decide on a possible takeover of the company by London-Zurich fund AS Equity Partners, while an unsolicited counter-offer has been submitted by transalpine competitor Newlat.
Relief Therapeutics (+2.9%) announced that it has completed a clinical observation phase on its experimental treatment RLF-ODO32 for phenylketonuria, a rare hereditary disease affecting metabolism. The conclusions of this program should be available in October. (AWP)
