2023-10-24 09:31:06
Zurich (awp) – The Swiss stock market was in the red on Tuesday as midday approached, in a context marked by fears linked to the conflict between Hamas and Israel. Investors are also closely following the results season in the United States but also in Switzerland.
After opening in the red, the New York Stock Exchange ended in disorganized order on Monday, while bond rates, which had reached a 16-year high at the start of the session by reaching 5%, then fell back.
Despite the drop in oil prices, the risks, particularly on the stock markets, remain the same, with capital holders watching the evolution of the conflict in the Middle East with concern, analysts point out.
“After an opening in the green, investors seem to be banking on caution once more,” adds an IG Market analyst.
At the macroeconomic level, the decline in private sector activity worsened in October in the euro zone, signaling a risk of recession in the second half of the year, according to the Flash PMI index published Tuesday by S&P Global.
At 11:00 a.m., the SMI lost 0.26% to 10,303.67 points, and the SLI lost 0.15% to 1,615.27 points and the SPI 0.21% to 13,522.45 points. Among the 30 star stocks, 10 gained ground and 20 lost ground.
Far ahead of other titles, Logitech (+10%) continued to stand out. The manufacturer of computer accessories closed the second quarter of its staggered 2023-2024 financial year with a decline in sales but an improvement in its profitability, thanks to a reduction in costs. The Vaudois group subsequently raised its forecasts for the whole year and said it was making progress in recruiting a new general manager.
Luxury stocks Swatch (+1.2%) and Richemont (+0.9%) respectively occupied second and third position without specific information.
The three heavyweights were in the red. Novartis (-1%) which has just empowered its generic and biosimilar subsidiary Sandoz, is revising its annual ambitions upwards somewhat at the end of the 3rd quarter. Revenue growth is now expected at nearly 10%, compared to 5 to 9% previously. The increase in basic operating profit is estimated at between 15 and 19%, instead of 10 to 15%.
Nestlé (-0.2%) and Roche (-1%) also weighed on the flagship index.
Red lantern since the start of trading, Sandoz lost 4.9%. The former generics and biosimilars subsidiary of Novartis, listed on the Swiss Stock Exchange, closed the first nine months of the year with a turnover of 7.1 billion dollars, up 5% over one year, signing its eighth quarter of growth at constant exchange rates (cc).
SIG Group (-1.1%) also lost ground. Boosting its revenues, the Schaffhausen packaging manufacturer saw its net profit soar to 84.3 million euros (79.4 million Swiss francs), compared to 9.3 million a year earlier. The group immediately confirms its expectations for the year as a whole.
In the broader market, pharmacy operator and drug wholesaler Galenica (+4.6%) revised its medium-term growth forecast upwards. Dividend targets have been confirmed.
After gaining ground, Idorsia fell 6.2%. The group has revised its losses downward for 2023. The halving of its site’s fixed costs will involve the elimination of 475 positions by early 2024, including up to 300 layoffs mainly in research and management functions. administration.
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