The Swiss stock market ended on a negative note on Wednesday. As elsewhere in the world, investors were awaiting the decisions of the American Federal Reserve (Fed) in the evening (Swiss time). The SMI ended below the symbolic 12,000 point mark.
In New York, Wall Street was trading in a mixed order in the morning, after opening close to equilibrium.
“The market is consolidating while waiting for the Fed,” observed Karl Haeling of LBBW.
The Federal Reserve was due to announce its monetary policy decision at 18:00 GMT (20:00 in Switzerland), before a press conference by its chairman Jerome Powell around 20:30.
Mr. Powell has already indicated for several weeks that the institution would probably proceed with a reduction in its key rate. But a few hours before the announcement, Wall Street has still not rallied to a central hypothesis.
“There could be a marked reaction” to the Fed’s communication, warns Karl Haeling, “because the market is evolving with a level of uncertainty that we have not known for a long time.”
In light of recent indicators, most economists are leaning toward a quarter-percentage-point cut, the standard format for rate changes.
The SMI fell by 0.50% to 11,982.30 points, lower at 11,943.70 points and higher at 12,057.88 points. The SLI fell by 0.63% to 1,950.87 points and the SPI by 0.48% to 15,945.27 points.
Of the 30 leading stocks, Sandoz (+0.9%), Roche (good +0.8%, buoyant +0.4%), Holcim (+0.1%) and Novartis (+0.01%) are the only winners of the day.
The third heavyweight Nestlé (-0.9%) weighed on the index.
Sonova (-2.3%) finished last, behind Givaudan (-1.8%) and Alcon (-1.7%).
Barclays has downgraded the hearing aid manufacturer’s recommendation to “equal weight” from “overweight”. The target has been revised to CHF 310 from CHF 320. The analyst believes that Sonova’s position in its sector remains positive in the long term and expects market share gains, which are, however, already factored into the share price, the upside potential of which is currently limited.
On the corporate news front, Partners Group (-0.5%) has entered into a partnership with Italian investment bank Mediobanca Private Banking. Through this agreement, the financial terms of which were not disclosed, clients of this division of Mediobanca will be able to access Partners Group’s investments in private markets.
ABB (-0.5%) signed a statement of intent with Argent LNG, which is developing a project to export liquefied natural gas (LNG) from Port Fourchon, Louisiana. The Zurich-based electrical engineering conglomerate plans to provide electrical and automation infrastructure, in addition to software solutions.
In the broader market, confidence is increasing at AMS Osram (+5.9%). CFO Rainer Irle made positive comments in an interview published in Finance and Economy“AMS Osram is in a good financial situation,” he told the German-speaking newspaper.
Solar cell manufacturer Meyer Burger (-11.8%) has detailed its restructuring. It 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.
Relief Therapeutics (+8.2%) has completed a clinical observation phase on its experimental treatment RLF-ODO32 against phenylketonuria, a rare hereditary disease affecting metabolism. The conclusions of this program should be available in October.
The banking group Valartis (-0.1%) has announced its intention to take over the Geneva-based holding company ENR Russia in its entirety. The offer price is CHF 5.60 per ENR share.
Zurich-based software and IT services provider Crealogix (unchanged) has announced the delisting of its shares on the SIX Swiss Exchange as of November 8. The last trading day has been set for November 7.
Milk processor Hochdorf (suspended from trading) held an extraordinary general meeting. Shareholders agreed to the sale of the remaining HSN assets to the London-Zurich fund AS Equity Partners. (AWP)
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