2023-10-31 08:31:04
Zurich (awp) – The Swiss stock market opened on a cautious note on Tuesday, ahead of the meeting of the American Federal Reserve (Fed) and inflation in the euro zone. In Switzerland, a series of companies were closely followed, including Straumann and AMS Osram, following their nine-month results.
The New York Stock Exchange started the week with a technical rebound Monday evening. After falling into the correction zone on Friday, the broader S&P 500 index, the most representative of the American market, ended up 1.20%.
Apart from the Fed’s monetary policy decision expected on Wednesday evening, investors will also be attentive to the new US Treasury issuance program which will be published on Wednesday, underlined John Plassard of Mirabaud Banque. “In recent weeks, investor demand for Treasuries has shown signs of weakness, even as growing government deficits flood the market with new debt,” he added in a commentary.
Speakers will also have to look at growth and inflation in the euro zone. In China, manufacturing activity came to a halt in October, following several months of progression, according to the Purchasing Managers’ Index (PMI), a new sign that the recovery of the world’s second largest economy remains fragile.
On the Swiss Stock Exchange, the flagship SMI index opened down 0.23% at 10,358.69 points, following closing the day before up 0.57%. The SLI lost 0.04% to 1617.62 points and the SPI lost 0.13% to 13,559.07 points.
The majority of star stocks started the session in the green, led by Straumann (+1.4%), Alcon (+1.3%) and Givaudan (+1.1%). The supplier of implants and surgical-dental devices benefited from solid demand in the third quarter, with revenue rising 3.7% to 570.6 million Swiss francs.
Logitech (+0.6%) progressed more modestly, despite the announcement Monday evening of the recruitment of a new boss. Hanneke Faber will take up her position on December 1st.
In contrast, the Roche dividend certificate (-2.6%) fell sharply. The pharmaceutical group suffered a failure in the “Embark” clinical study devoted to Duchenne muscular dystrophy (DMD), which did not reach the primary endpoint. JPMorgan subsequently lowered the share price target.
The two other heavyweights Novartis (-0.1%) and Nestlé (+0.5%) were heading in opposite directions.
The news in the broader market was very lively. AMS Osram (+1.2%) was sought following. Between July and the end of September, the group generated a turnover of 904 million euros, down a quarter over a year, but up 6% over a quarter.
Vontobel (+0.4%) observed a decline in assets under management in the third quarter. The influx of money into asset management has particularly weighed on the performance of the Zurich establishment.
Ems-Chemie (+0.3%) saw its revenues decline by almost 10% on an annual basis during the first nine months of 2023, facing a deterioration in the economic context and the strength of the franc.
Cicor (-0.2%) secured new financing for its growth by renewing a syndicated loan. The funds may be used in part to make acquisitions.
Basilea (-0.3%) has acquired exclusive rights from its Korean counterpart Intron Biotechnology as well as a buyout option on the experimental antibacterial treatment tonabacase. The financial details of the operation are subject to a confidentiality clause.
Leclanché (-4.4%) improved its revenues thanks to a larger order book and reduced its loss during the first six months of 2023 in annual comparison. The majority shareholder agrees to maintain the status of the convertible loan without immediate conversion “in order to safeguard the interests of minority shareholders”, according to the document.
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