2024-02-13 17:16:12
Zurich (awp) – The Swiss stock market, which had mostly moved in the green in the first part of the session, was weighed down by American inflation and ended in the red on Tuesday. After oscillating around the 11,200 point mark before the American data, the SMI went below balance and finished a little above that of 11,100 points which it touched at its lowest in the day.
In New York, Wall Street fell sharply in the morning, disappointment prevailing following persistent inflation in the United States, higher than expected in January.
The consumer price index (CPI) increased by 0.3% in the first month of the year, more than in December and more than expected.
Over one year, price increases have certainly slowed to 3.1%, but less than expected. Core inflation, excluding energy and food, is stubborn, remaining at 3.9%.
“These data, which show a reacceleration, support the Fed’s view that interest rate cuts are not imminent,” commented Rubeela Farooqi, chief economist for HFE.
In Switzerland, on the other hand, inflation experienced a clear slowdown in January, standing at 1.3% over one year, compared to 1.7% the previous month. Economists surveyed by the AWP agency anticipated a surge of between 1.5% and 2.2%.
For UBS analysts, however, it is still too early to declare victory. A further increase in the reference rent rate, an increase in VAT and geopolitical turbulence – notably in the Red Sea – continue to represent the risk of a further rise in prices. A reduction in the key rate by the Swiss National Bank (SNB) in March would therefore be premature, according to experts from the three-way bank, who are still counting on three monetary easings this year starting in June.
In this environment, the SMI ended down 0.33% to 11,142.79 points, with a low of 11,100.88 points and a high of 11,231.94 points. The SLI dropped 0.48% to 1802.45 points and the SPI 0.36% to 14,581.33 points. Of the 30 star stocks, 17 fell and 13 advanced.
The group of winners of the day is led by Sandoz (+2.2%), followed by Swiss Re (+1.5%) and Zurich Insurance (+0.9%).
Heavyweights Roche (good +0.4%, buoyant +0.3%) and Novartis (+0.4%) supported the index, while Nestlé (-0.4%) lost ground.
Roche, through Roche Tissue Diagnostics (RTD), and American diagnostic software developer Pathai have entered into a research agreement in the area of artificial intelligence (AI). Both companies hope to advance precision medicine by bringing together AI interpretation and companion diagnostics.
Also sought following, Swisscom (+0.7%) did not suffer from a price target reduction by JPMorgan, which confirmed “underweight” following last Friday’s figures. According to analysts, the outlook remains difficult for the blue giant. The latter also announced a salary increase of 1.9% from April 1.
In the losing camp, Julius Bär (-2.1%) finished bottom, behind Geberit and Straumann (each -1.9%).
UBS (-1.6%) also lost ground.
Schindler (-0.2%) reveals its annual results on Wednesday. Analysts expect a turnover of 11.47 billion Swiss francs, new orders of 11.46 billion and a net profit of 906 million Swiss francs. The dividend is planned at 4.31 Swiss francs per share.
On the broader market, the antifungal and antibiotic specialist Basilea (+8.8%) certainly saw its net profitability erode last year, but management intends to do better than raise the bar this year. Sales of Cresemba and Zevtera are expected to continue to grow. The focus is also on the United States and a green light expected from the FDA.
Flughafen Zürich weakened by 1.3%, the day following the publication of a rebound in its attendance in January. However, this still remains below the standards before the health crisis.
Composite materials specialist Gurit (-3.9%) has appointed Javier Perez Freije as its new financial director. The Spanish citizen will begin his new role on May 1.
The real estate company Peach Property (-5.9%) announced Monday evening the departure of financial director Thorsten Arsan at the end of August 2024. A new manager will be presented soon.
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