Swiss stock market indices close sharply lower

Swiss stock market indices close sharply lower
Swiss stock market indices close sharply lower

The Swiss stock market fell sharply on Friday. After rebounding above 12,100 points the day before, the SMI plunged back below this level from the opening and registered below 12,000 points at its lowest of the day before finishing a little above this level. The corporate news front remained sparse, as did macroeconomic data.

On Wall Street, the indices moved in scattered order in the morning after a negative opening. The consolidation movement with profit taking for technology stocks continued, with Nvidia, Broadcom and Qualcomm in particular losing ground.

“The market had gone too far” with a series of consecutive records, argues Quincy Krosby of LPL Financial. “The time for an ebb had come.”

“The market will struggle if giant caps weaken and nothing else arouses interest to compensate,” Patrick O’Hare of Briefing.com commented in a note.

The decline in the Nasdaq accelerated after the publication of S&P Global’s PMI indices, which came out above expectations for both the manufacturing industry and the services sector in June in the United States. In both cases, they are significantly above 50, which indicates an expansion and tempers the impression of a slowdown in the American economy.

On the macroeconomic front, in the euro zone, the recovery in private sector activity has significantly run out of steam, with the indicator for the manufacturing sector even recording its sharpest decline in six months, according to the Flash PMI index published by S&P Global. The latter slipped to 50.8 points, compared to 52.2 in May, reaching its lowest level in three months.

In France, the business climate remained stable in June, remaining just below its long-term average for the third consecutive month. The employment indicator, however, deteriorated. Private sector activity declined in June, for the second consecutive month, penalized by a drop in demand, against a backdrop of uncertainty linked to legislative elections, indicated the S&P Global firm and the Hamburg Commercial Bank ( HCOB).

The SMI fell 0.95% to 12,012.87 points, lower to 11,987.23 points and higher to 12,110.54 points. The SLI dropped 1.01% to 1943.24 points and the SPI 0.92% to 15,969.72 points. Of the 30 star stocks, the good Roche (+1.3%) and the good Lindt (+1.1%) are the only winners of the day.

The carrier Roche (-0.2%) has long appeared in green. Novartis (-0.4%) also tried to survive, without success. As for Nestlé (-1.3%), it underperformed and weighed on the index.

The construction materials giant Holcim (-3.5%) finished bottom, behind the banking giant UBS (-3.2%) and the electrical engineering giant ABB (-2.8%). Deutsche Bank downgraded Holcim to “sell” from “hold”, while increasing the price target to 45 by 40 francs.

The other bank, Julius Bär (-1.7%) also underperformed the index.

The private equity specialist Partners Group (-2.1%) announced the strengthening of its presence in Asia with the opening of an office in Hong Kong. This is the seventh representation on the Asian continent where the Zug asset manager established itself in 2004 by opening a representation in Singapore, the regional headquarters.

The sanitary installations specialist Geberit (-1.2%) spent 600 million francs to buy back more than 1.26 million of its own shares, or 3.6% of the share capital. The repurchase was carried out on a separate trading line with a view to reducing capital by canceling the repurchased securities. The operation, launched in June 2022, was planned for two years and provided with a maximum amount of 650 million francs.

On the broader market, a change occurs within the shareholding of the specialty chemist Dottikon ES (+2.6%). Its boss and president Markus Blocher reduced his stake to 64.74%. The son of former federal councilor Christoph Blocher has placed 75,000 shares with a “long-term” investor at a unit price of 260 francs. (AWP)

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