2023-06-09 16:16:03
Zurich (awp) – The Swiss stock market ended on a negative note on Friday. After a still slightly positive opening, the SMI fell back below equilibrium in the first minutes of trading. It accentuated its losses from the end of the morning and fell back below the 11,300 point mark, ending up a little above its low for the day.
In New York, Wall Street gained ground in the morning trying to maintain the momentum of the day before which saw the market cross a significant upward threshold, before a week rich in events and indicators.
The S&P 500 managed to end Thursday 20% above its October 12 closing low, which means that Wall Street has gone into a “bull market”, i.e. a bull market, a important psychological threshold for operators.
“The market is going through an interesting transition,” commented Quincy Krosby, analyst at LPL Financial. “The mood has changed. Institutional investors, who stood on the sidelines, are re-engaging.”
“The question everyone is asking is whether the good sequence will continue,” said Patrick O’Hare of Briefing.com in a note. “The answer will depend on economic data, corporate earnings growth and monetary policy,” he continued.
In terms of macroeconomic news, inflation in China was near zero in May, with ex-factory prices continuing to plunge. These are all signs of sluggish demand and a complicated business environment. The consumer price index (CPI), the main gauge of inflation, rose in May by 0.2% over one year, once morest 0.1% a month earlier.
The SMI ended down 0.48% at 11,252.42 points, with a low of 11,238.63 and a high of 11,321.23 at the opening. The SLI fell 0.59% to 1757.99 points and the SPI 0.32% to 14,836.01 points. Of the 30 star stocks, 21 fell and 9 advanced.
Without specific information, Temenos (+1.9%) finished on the top step of the podium, followed by Swatch (+1.0%) and ABB (+0.8%).
Richemont (-0.8%) did not follow the same path as its competitor from Biel.
In the heavyweight camp, Nestlé (+0.2%) supported the index. Novartis (-0.2%) and Roche (-0.7%) lost ground.
Vontobel raised Novartis’ price target and confirmed “buy”. The group’s incubator is promising, noted the analyst. The latest data on the oncological treatment Kisqali are certainly not as convincing as hoped, but the expert was able to note on the occasion of a recent congress that the drug was well accepted by both experts and doctors.
Givaudan (-3.1%) finished at the bottom, behind Lonza (-2.6%) and Sika (-2.3%).
According to brokers, the action of the Geneva perfumes and flavors giant suffered from the profit warning issued by its British competitor Croda.
The bout of weakness in the Kühne+Nagel share price (-2.1%) recently has visibly whetted the appetite of some members of its board of directors. According to the announcements of participation published by SIX Exchange Regulation (SER), some 26,000 shares would have changed hands on June 7 within the framework of two transactions, for a total volume of around 6.5 million Swiss francs. The logistician will also enter the SMI on Tuesday, replacing Credit Suisse (-0.4%).
The action of the bank with two sails lived its last full week of listing. Monday should be its last day at the SMI before the delisting the next day. UBS and Julius Bär (each -0.3%) also lost ground.
The Confederation and UBS have signed the contract of guarantee once morest losses, agreed within the framework of the forced takeover of Credit Suisse by its Zurich counterpart. The number one Swiss bank will only be able to draw on this guarantee capped at 9 billion Swiss francs following having taken charge of the first 5 billion.
In the broader market, struggling Zurich asset manager GAM (-0.7%) said its London counterpart Liontrust is expected to release details of its takeover bid for Julius Bär’s former unit on Tuesday. Liontrust’s offer, which values GAM shares at 67.23 cents, is recommended by the Zurich asset manager’s board of directors.
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