Zurich (awp) – The Swiss stock market ended on a positive note on Tuesday, following the truce of the long Easter weekend. After peaking above 11,300 points at the very beginning of the session, the SMI quickly moderated its gains and began to evolve a little above the balance and the 11,200 point mark. Attention shifted to Bern where parliament began its three-day extraordinary session on the forced takeover of Credit Suisse by UBS.
In New York, Wall Street moved in dispersed order in the morning, on the eve of the publication of data on US inflation, eagerly awaited by the markets.
“The market lacks conviction this morning. Tomorrow we will have the consumer price index for March, so investors are adopting a wait-and-see attitude before this report and also before the first bank results on Friday”, summarized Patrick O’ Hare from Briefing.com.
Analysts expect inflation in the United States, according to the CPI index, to fall to 5.1% over one year, a lowest in almost two years, once morest 6% over twelve months in February. Over the month, it should hold at +0.2% once morest +0.4% the month before.
On the other hand, according to Art Hogan of B. Riley Wealth Management, underlying inflation, excluding volatile sectors such as food and energy, might remain tenacious. It is expected to increase over one year to 5.6% once morest 5.5% in February, showing that the price of services continues to rise.
Inflation will be watched closely by investors as it should give clues to the attitude of the US Federal Reserve (Fed) which will hold its next monetary policy meeting on May 2-3.
The SMI ended up 0.31% at 11,265.30 points, with an opening high of 11,306.25 and a low of 11,223.98. The SLI gained 0.48% to 1765.02 points and the SPI 0.38% to 14,704.35 points. Of the 30 star stocks, 22 rose and 8 fell.
Today’s podium consists of ABB and Sika (each +2.6%), Holcim (+1.7%) as well as Geberit, Adecco and Richemont (all +1.4%).
Barclays lowered the construction chemist’s price target while confirming “overweight”, expecting organic growth of 1% in the 1st quarter. In the medium term, the analyst estimates the group’s Ebit growth as one of the strongest in the sector.
UBS (+1.1%) and Credit Suisse (+0.9%) gained ground. At the opening of the extraordinary session devoted to the forced takeover of Credit Suisse by UBS, the President of the Confederation Alain Berset reiterated that the Confederation had no other choice. Buyout was the best of the four options on the table. Nationalization would have posed too high direct risks to the Confederation and to taxpayers.
A bankruptcy would have had devastating effects for Switzerland and its reputation, companies and private customers. And confidence in Credit Suisse was so eroded that further consolidation would not have been enough.
The federal guarantee for the rescue of Credit Suisse has been validated by the Council of States. The senators on Tuesday endorsed the urgent credits totaling 109 billion Swiss francs. Critics abounded to denounce the failings that led to the crisis.
Straumann (+0.1% or +0.15 francs) was treated excluding the dividend of 0.80 francs.
Alcon (-1.7%) finished in the red lantern behind Temenos (1.5%) and Logitech (-1.2%).
The Geneva designer of banking software did not benefit from a price target increase with confirmation of a “buy” recommendation by Research Partners. After the profound rate changes, 2023 and 2024 revenues should return to their long-term courses, according to the analyst who raised his estimates for Ebit 2023 and 2024.
Heavyweights Roche, Novartis and Nestlé (all -0.3%) weighed on the index.
On the broader market, the real estate company Peach Property (+0.8%) modified the conditions of its convertible loan, which must now enable a maximum of 65 million Swiss francs to be raised.
At Softwareone (+0.6%), Daniel von Stockar will not seek a new presidential mandate. Adam Warby, current administrator of the group, is designated to succeed him.
Semiconductor maker U-Blox (-0.8%) released its sales figures for the first quarter of 2023 on Wednesday. Analysts expect a turnover of 187 million Swiss francs. The Thalwil group presents for the first time a separate report for the first partial, in order to improve transparency on the evolution of its activities.
Plazza (-1.6% or -5 Swiss francs), PSP Swiss Property (-4.6% or -4.90 Swiss francs), Fundamenta (-2.7% or -0.45 Swiss francs) and SF Urban ( -3.3% or -3 Swiss francs) were treated excluding the dividend of respectively 7 Swiss francs, 3.80 Swiss francs, 0.55 Swiss francs and 3.60 Swiss francs.
rp/lk