The Swiss stock market ended on a positive note on Friday. Investors were reassured by the further decline in inflation in the United States and the prospects of a further rate cut by the American Federal Reserve (Fed). The SMI finished above the symbolic bar of 12,200 points, a little below its highest of the day.
In New York, Wall Street moved in a mixed order in the morning, after a positive opening, welcoming new signals of a return to normal in inflation in the United States, which opens the way to other rate cuts.
The PCE report highlighted a slowdown in inflation which fell to 2.2% year-on-year in August, compared to 2.5% the previous month.
“This is better than expected (2.3% expected by economists) and it goes in the right direction,” commented Art Hogan of B. Riley Wealth Management, for whom “this provides the Federal Reserve with new evidence that ‘it is appropriate to continue lowering rates’.
These cuts “are a driver for stocks and bonds and should provide relief to the most rate-sensitive consumers,” explained Chris Zaccarelli of the Independent Advisor Alliance.
The SMI gained 0.20% to 12,234.05 points, higher at 12,255.95 points and lower at 12,188.25 points. The SLI gained 0.26% to 2003.27 points and the SPI 0.29% to 16,323.40 points. Of the 30 star stocks, 18 rose, 11 fell and Kühne+Nagel finished unchanged.
SIG Group (+4.0%) finished at the head of the pack, followed by Straumann (+3.6%), Richemont (+2.7%) and Swatch (+2.5%).
Luxury stocks continued to benefit from hopes of improvement in the Chinese economy, after the various measures announced by the government this week. The action of the Bienne watchmaker was also boosted by rumors of delisting following an interview with Nick Hayek in Balance sheet. The latter, however, denied the rumor in an article published this Friday in the NZZ.
In the heavyweight camp, Roche (+0.6%) and Nestlé (+0.5%) supported the index, while Novartis (+0.03%) finished almost in balance.
In banking, Julius Bär (+1.9%) and UBS (+0.2%) gained more or less ground. The appeal trial for laundering Bulgarian mafia funds opens Tuesday before the Federal Criminal Court. Following the takeover of Credit Suisse, it is UBS which is now appearing alongside two other co-defendants.
The personnel placement giant Adecco (+3.4%) has retained the “Baa1” credit rating granted by the Moody’s agency. The outlook remains “stable” for the Zurich group whose shares have been on the SLI since last Monday, in place of the holder Roche (+0.7%).
On the losing side, SGS (-2.5%) finished bottom, behind Holcim (-2.1%) and ABB (-1.7%).
In the broader market, the Genolier Innovation Hub was inaugurated on La Côte Vaudoise. This hub dedicated to medical innovation and international ambition, which cost 100 million francs to the holding company Aevis Victoria (unchanged), aims to create an environment conducive to interdisciplinary collaboration.
The holding company Airesis (+10.3%) is not suffering from the recent legal action by the French Rugby Federation for its Le Coq Sportif brand. The Clarens-based company is due to unveil its half-year results on Monday evening.
Berenberg took over the coverage of the secure access specialist Dormakaba (-0.6% to 620 francs) with “buy” recommendation and price target of 798 francs. The analyst sees a 30% upside potential for the stock from the current price.
The solar module producer Meyer Burger (+8.9%) had the wind in its sails before the publication of its first half results on Monday. Analysts forecast a turnover of 52.1 million and a net loss of 103.4 million francs.
The shareholders of Peach Property (+3.8%) have given the green light to a capital increase intended to reduce the debt of the Zurich real estate company. Two directors were also ejected, at the suggestion of the reference shareholder H21 Macro Limited.
Sensor specialist Sensirion (+14.9%) rose sharply after UBS suddenly raised its recommendation to “buy” from “sell” and raised the price target to 84 from 68 francs. The analyst sees encouraging signs of an end to destocking and expects the high-margin medical technology division to return to growth by 2025. The industrial sector has already benefited in the first half of 2024 from the normalization of demand for air purifiers. (AWP)
