Swiss Stock Exchange News: Monday Market Recap and Corporate Updates

2023-11-13 08:44:05

Zurich (awp) – The Swiss Stock Exchange started the first session of the week on the right foot on Monday, in the wake of Wall Street’s sharply rising close on Friday. However, the flow of corporate news, like that of macroeconomic data, remained modest, with the third quarter results season soon coming to an end.

The main American indices ended sharply higher on Friday evening, the stabilization of Treasury yields having stimulated large stock market capitalizations in the context of an increasingly unfavorable economy.

“Investors shrugged off rather ‘hawkish’ comments (in favor of monetary tightening) from Fed Chairman Jerome Powell. The latter in fact declared that the Fed was prepared to raise interest rates further if necessary”, recalls John Plassard, of Mirabaud Banque.

Persistent political polarization in the US Congress also increases the risk that successive governments will not be able to reach consensus on a fiscal plan aimed at slowing the decline in debt affordability.

In terms of rare macroeconomic information, the number of employed workers in Switzerland increased by 2.2% in the 3rd quarter year-on-year, while at the same time, the unemployment rate, calculated according to the ILO standard, fell. at 4.2%.

Shortly before 9:15 a.m., the SMI gained 0.13% to 10,555.35 points, the SLI 0.21% to 1665.25 points and the broader market indicator SPI 0.14% to 13,880.12 points. Among the 30 stocks in the Swiss Leader Index, seven lost ground and 22 gained, while Lonza stood still.

At the top of the table, Julius Bär (+2.0%) escaped ahead of Sandoz (+1.5%) and VAT Group (+1.2%). The Zurich wealth manager saw his price target cut by Deutsche Bank, which however reaffirmed its buy recommendation in view of the structural trends from which the group should benefit.

The heavyweights of the rating moved in a scattered order, Novartis managing to progress by 0.2%, while the good Roche and the registered Nestlé each lost 0.1%.

Richemont (-0.7%) inherited the red lantern. The Geneva luxury giant saw its price target cut by several institutes, following delivering a performance below expectations on Friday. Lindt & Sprüngli (participation voucher: -0.2%) was also struggling.

On the broader market side, Orascom Development Holding (+2.0%) saw its Egyptian subsidiary increase its turnover and net profit during the first nine months of the year.

Basilea (-0.6%) has concluded an agreement with its American counterpart Amplyx for the purchase of the candidate treatment fosmanogepix, a broad-spectrum antifungal in the clinical development phase, as well as the rights to another preclinical substance. The company subsequently adjusted its annual objectives.

TE Connectivity has obtained the green light from regulatory authorities to complete the acquisition of Schaffner (+0.6%) as part of a public takeover offer. The American currently holds 89.1% of the share capital of the manufacturer of electrical and electronic components, according to provisional interim results.

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