Zurich (awp) – The Swiss stock market ended on a slightly negative note on Friday. After a first alert at the start of the session, the SMI moved in the green until the beginning of the afternoon, registering its highest point of the day above 12,050 points. It returned and ended in the red and below the 12,000 point mark in the wake of data on PCE inflation in the United States, despite a jump at the positive opening of Wall Street.
In New York, Wall Street gained ground in the morning, preparing to break new records after the announcement of the slowdown, as expected, in American inflation.
Inflation stalled as expected in May at 2.6% over one year, after 2.7% in April, according to the PCE index, favored by the American Federal Reserve (Fed). Over one month, prices remained the same, the inflation rate being zero, compared to +0.3% the previous month.
The annual change in PCE “decelerated to its slowest pace since 2021 and is within reach of the Fed’s 2% target,” commented Rubeela Farooqi, chief economist for High Frequency Economics.
The SMI ended down 0.09% at 11,993.83 points, with a low of 11,980.20 points and a high of 12,058.05 points. The SLI fell 0.20% to 1,943.73 points and the SPI 0.14% to 15,919.28 points. Of the 30 leading stocks, 16 fell and 14 advanced.
Givaudan and Straumann (each -2.1%) share the bottom spot, behind Swatch (-1.9%) and Richemont and Geberit (each -1.1%).
Givaudan did not benefit from an increase in its price target to 4400 from 4000 Swiss francs by Bank of America which confirmed its “neutral” recommendation. Flavor and fragrance manufacturers like Givaudan are becoming more and more important to their customers, according to the analyst and this translates into an ever-increasing share of suppliers in the final product. Within the industry, BofA currently sees greater upside potential for Symrise (“Buy”) shares.
HSBC lowered the price target for the Biel watchmaker’s carrier to 210 from 250 Swiss francs, while confirming “hold”.
UBS lowered Straumann’s price target to 120 from 148 Swiss francs and confirmed “neutral”. China should once again be a driver of performance according to the analyst who expects organic revenue growth of 8.7% in the second quarter, as well as an EBIT margin of 24.55% for the first half of the year. .
The heavyweights Roche (bearer -0.6%, good -0.4%) and Nestlé (-0.5%) weighed on the index, while Novartis (+0.8%, bronze medal of the day ) supported him well.
Roche recorded two successes on Friday: Piasky, intended for people with paroxysmal nocturnal hemoglobinuria (PNH), received a favorable recommendation from the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA). The Basel pharmaceutical giant has also obtained from the main advisory committee of the European medicines watchdog a new indication recommendation for its new ophthalmic treatment Vabysmo, against retinal vein occlusion (RVO).
Belgian Thierry Vanlancker, chairman of the board of directors of Sika (-1.1%) for the past three months, plans to bring about a generational change within the inner circle in the next three to four years.
Ahead of Novartis, the podium of the day is made up of Partners Group (+1.5%), Swisscom (+1.1%).
On the broader market, the construction group Implenia (-0.6%) won the call for tenders for the construction of the Sisikon road tunnel in central Switzerland. The order volume exceeds 250 million Swiss francs.
The Cantonal Bank of Lucerne (+1.7%) has raised its profitability ambition for the 2024 financial year. The Central Swiss establishment now plans to generate a net profit of between 270 and 285 million Swiss francs.
Heating and air conditioning installer Meier Tobler (-1.3%) sells its company Meier Tobler Air Hygiene to Hälg Group. The amount of the transaction has not been disclosed.
The machine manufacturer Starragtornos (-4.7%), merged at the end of last year, has warned that its first half in 2024 will not have been up to the same period a year earlier, on a professional basis. formed. The decline in turnover is expected to continue over the entire financial year and the annual operating surplus (Ebit) risks showing a “sharp decline”.
The ski lift company Bergbahnen Engelberg-Titlis (-0.7%) took advantage of ideal conditions and good snow cover at the start of the year to have a successful winter season, despite the bad weather in February and March. Attendance increased and results soared in the first half of the staggered 2023/24 financial year.
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