2024-02-05 17:16:14
Zurich (awp) – The Swiss stock market ended on a slightly positive note on Monday. After some hesitation in the morning and a low in the red, the SMI recovered and approached the symbolic bar of 11,300 points less than ten units at its highest of the day, only to lose all its momentum in the wake of Wall Street and end in sawtooth, a little above balance.
In New York, Wall Street lost ground in the morning, following records and scalded by tension on bond rates and digesting a burst of company results.
On Sunday Jerome Powell, president of the American central bank (Fed), repeated in an interview on the CBS show “60 Minutes” that a rate cut was not imminent. He reiterated that it was “unlikely” that the Fed would have enough “confidence” in falling inflation by March, the date of the next meeting, to ease monetary policy.
The last investors who still believed in a Fed rate cut next month seemed to finally abandon this position, which pushed bond yields higher. There were only 15% left on Monday to think that a reduction in the cost of money is still possible in March compared to 46% last week and another 20% on Friday, according to the measurement tool on the futures markets of CME Group.
In Switzerland, the labor market should weaken somewhat at the start of the year, but remain solid overall. The outlook is nevertheless likely to deteriorate in the areas of the hotel and catering industry and the manufacturing industry, according to KOF experts.
The SMI ended with a gain of 0.31% to 11,274.47 points, with a high of 11,295.09 and a low of 11,227.45. The SLI advanced by % to 18 points and the SPI by 0.35% to 14,727.73 points. Of the 30 star stocks, 19 gained ground, 10 lost ground and Richemont ended up in balance.
Lonza (+3.2%) precedes Alcon and Swiss Re (each +1.6%) and Nestlé (+1.5%) on the podium of the day.
The Italian Italpizza has bought the Buitoni factory in Caudry (North), implicated in the health scandal of contaminated pizzas and which Nestlé had announced would close in March 2023, we learned from the two groups. Italpizza, which plans to restart production in the fall of 2024, plans more than twelve million euros of investments by 2028 to modernize the site.
Novartis (+0.6%) also supported the index, while Roche (bearer -1.6%, good -1.5%) finished bottom, behind ABB (-1.2%).
After last week’s figures, UBS, Deutsche Bank and Stifel lowered the price target for the Roche dividend certificate and confirmed their recommendation to “neutral”, “sell” and “hold” respectively. The turnover for the 4th quarter largely met expectations, according to the analyst of the three-key bank. Operating profit for the second half, however, was 11% lower than expected.
UBS (-0.3%) lost ground on the eve of the publication of its 4th quarter results. Analysts surveyed by the AWP agency expect on average a net loss of $498 million. However, comparison with the performance of a year ago is difficult, due to the integration of Credit Suisse. Analysts will therefore be particularly interested in the process of absorption of the unhappy rival and in particular in cost and workforce reductions.
On the broader market, Mobilezone (-0.3%) once once more won the SBB call for tenders for the management of the fleet of more than 60,000 mobile telephone subscriptions of the Federal Railways and their subsidiaries.
Peach Property (+6.6%) recorded increased rental income, but suffered a significant loss in 2023. Management intends to reduce the vacancy rate and costs in the current financial year.
Zug Cantonal Bank (ZGKB, -0.8%) took advantage of the rise in interest rates in 2023. Despite an increase in expenses, the establishment was able to generate a profit described as record by management.
Reference shareholders of software solutions provider Softwareone (+9.8%) Daniel von Stockar, Beat Curti and René Gilli – who jointly hold 29% of the capital – demand the holding of an extraordinary general meeting aimed at overthrowing the board of administration. A delisting of the stock is desired by these shareholders.
The investment company Xlife Sciences (-0.2%) announced an extension of its partnership to promote life sciences in the emirate of Abu Dhabi with the arrival of the American laboratory equipment manufacturer Thermo Fischer Scientific.
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