Like the day before, the SMI spent the morning in the green, before falling into the red early in the afternoon. However, it rose above equilibrium to its highest point of the day in the wake of Wall Street, falling again towards the end, while finishing above the symbolic 12,000 point mark.
In New York, Wall Street gained ground in the morning trying to move past results considered disappointing and mixed indicators, the market positioning itself before the publication of a major price index (PCE inflation, closely followed by the Federal Reserve American), Friday.
After two constructive sessions, “the mood is more contained this morning,” commented Patrick O’Hare of Briefing.com in a note, mentioning a wave of results and macroeconomic data.
The latest growth estimate for the first quarter came out slightly above the previous one, at 1.4% annualized, “but still indicates that economic growth is slowing,” estimated Chris Zaccarelli of Independent Advisor Alliance.
The economic research center BAK Economics moderately raised its growth projection for GDP this year, to 1.2%, compared to 1.1% previously. The house’s experts anticipate a further decline in inflation, from 1.4% over the current year to 0.9% over the next.
The SMI fell 0.09% to 12,004.31 points, lower at 11,990.32 and higher at 12,050.52. The SLI advanced 0.03% to 1947.67 points and the SPI lost 0.04% to 15,941.95 points. Of the 30 star stocks, 17 rose, 12 fell and the good Lindt finished unchanged.
Today’s podium consists of Sandoz (+1.8%), Holcim (+1.5%) and Straumann and the good Schindler (each +1.1%).
The St. Gallen-based building materials giant wants to invest around 250 million francs in its three cement plants in Switzerland. The aim is to reduce the use of fossil fuels in cement production and to comply with the limit values for air pollutants set by the Air Pollution Control Ordinance (OPair).
In the heavyweight camp, Roche (good +0.3%, buoyant +0.4%) supported the index, while Novartis (-0.5%) and Nestlé (-0.8%) weighed.
SIG Group (-2.8%) finished bottom, behind Kühne+Nagel (-1.3%) and Swatch (-0.9%).
The Schwyz-based transport and logistics giant is expanding its warehouse network for the US healthcare market with four new transshipment facilities, particularly for medicines and vaccines. The amount of the investment was not disclosed.
UBS and Goldman Sachs have cut their respective target prices for the Biel watchmaker, while confirming their recommendation at “neutral”. The major Swiss bank in particular is alarmed by production overcapacity, high inventories and the unfavourable effect of currencies. Its American counterpart believes that the decline in Swiss watch exports will be felt in the group’s figures.
Geneva-based Richemont (-0.1%) limited the damage. UBS also lowered its price target, but confirmed “buy”. The analyst believes that the stock has performed better than its competitors. The change in business model, which gives pride of place to jewelry to the detriment of watches, as well as a better geographical balance and reduced dependence on China are at the origin of this performance. The upside potential remains intact.
On the broader market, Carlo Gavazzi (-6.0%) reported declining annual results and a dividend cut by a third. A recovery is not expected in the short term.
Landis + Gyr (-2.3% or -1.70 francs) was treated excluding a dividend of 2.25 francs.
Fitch downgraded the rating for the long-term debt capacity of the real estate company Peach Property (-4.6%) to CCC+, against BB, reclassifying the Zurich firm to speculative category, but lifting the previously “negative” outlook attached to his assessments.
The shareholders of Relief Therapeutics (+0.9%) refused to grant discharge to the general management and the board of directors. Trading in the stock was suspended from late morning until early afternoon.
The railway equipment manufacturer Stadler Rail (+2.0%) has concluded a maintenance contract with the Hungarian State Railways (MÁV).
The Petrus Advisers fund lowered its stake in banking software specialist Temenos (+0.8%) to 3.841% compared to 5.123% previously. The British fund had made itself known by increasing its demands on the Genevan. (AWP)
