Zurich – The Swiss stock market ended Monday’s session with slight gains, continuing the recovery from last Friday. Prices at the beginning of the week were supported mainly by good specifications from the US and generally good economic data from this region, also from Friday. The data would increase investors’ propensity to take risks again, at least in the short term, in line with the deal. However, dynamics clearly weakened during the afternoon and the SMI gave back a large part of the early gains after the close.
The mood remains tense and fragile, according to the ZKB in its weekly review. In any case, uncertainty about the future course of the economy and inflation remains extremely high. Therefore, this week’s focus of financial markets is the European Central Bank (ECB), which, according to its announcements, intends to raise the main interest rate by 0.25 percentage point next Thursday. Bank stocks in particular were sought at the start of the week, while defensive stocks had much more trouble.
The SMI closed 0.26 percent higher, reaching 11,010.18 points after rising to almost 11,115 points in the early afternoon. The SLI index, which includes the top 30 stocks and does not include the heavyweight index in full weight, climbed 0.61 percent to 1,687.39 points and the broad SPI rose 0.31 percent to 14,205.31 At the close of trading, 21 of the 30 SLI shares went up, eight fell and one (Zurich) remained unchanged.
How the SMI develops in the short term, according to traders, will depend on the numerous corporate results that will be released this week. Nine blue chips were on the agenda, including the pharmaceutical heavyweights Novartis (Tuesday) and Roche (Thursday).
However, these – as well as the third SMI Nestlé heavyweight (data from next week) – were lagging behind on the reporting date and thus markedly slowed the growth of the leading index. Roche (-0.9%) i Novartis (-0.6%) in the afternoon fell significantly in red, Cuddle (-0.2%) was a bit better. There was no big news about the three, the market was mostly about profit taking. Roche and Nestlé in particular have been among the top SMI performers in the past four weeks.
By contrast, banks in particular have disproportionately benefited from an at least initially increased risk appetite. Yes the banks were with blue chips all day long CS (+ 3.3%), UBS and Julius Baer (each + 2.9%) in the top field and z Partner Group (+ 2.5%) further financial shares recorded an upward move.
Banks have recently been hit hard by a correction in the stock market that forced many market participants to withdraw from the market. In addition, banks’ commission income also declines as fiduciary account values decline. But now that should be reflected enough in the rates, the trader said. Along with Goldman Sachs and Bank of America, two other major US banks released quarterly data on Monday. Goldman’s shares benefited from the bank’s performance better than expected despite the gap in profits.
The only ones who turned out to be a little stronger than the banks Richemont (+ 4.0%), but also a sample far ahead (+ 2.4%). Both companies released data at the end of last week that hit the relevant stocks hard. The negative reaction of prices on Friday (at around -3%) was a bit exaggerated due to the really solid figures, market circles reported on Monday, and now there has been a corresponding opposite move.
At the bottom of the table, among the blue chips there are mainly health stocks, such as – in addition to the already mentioned Roche and Novartis – Straumann (-1.6%) lunge (-1.1%) i Alcon (-0.7%). Straumann and Lonza in particular have developed exceptionally well over the past four weeks, so here too, there has been talk of profit-taking.
Stand out in a wider market GAM (+ 3.3%) despite the earnings warning. Traders explain the rise in prices primarily by covering purchases and purchases in the “buy for bad news” style. They were also in great demand Meyer’s burger (+ 9.2%) i Montana Aero (+ 8.2%). (awp / mc / str.)
SIX Swiss Stock Exchange
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