Zurich Stock Exchange: in the red, despite three heavyweights in the green

ZURICH (awp) – The Swiss stock market was sideways in the red late on Friday, in line with its European peers and despite resistance from its three champions. The flagship index of the Zurich market even moved away from the bar of 12,100 points and hung briefly on the first exchanges.

“Brokers are still trying to assimilate the recent developments in the United States, torn between the comforting CPI and the pesky aggressive dovishness of the Federal Reserve System (Fed), which tends to cloud the clarity of the future development of interest rates,” notes Pierre Veyret, for Activtrades.

On the economic front, the Bank of Japan signaled overnight that it would scale back its massive purchases of domestic government bonds, without commenting on the scale of the measures or adjusting its key rate, which has been between 0.0% and 0.1% since March.

Inflation in France picked up somewhat in May as the strength of trans-Alpine exports allowed Italy to post a trade surplus in April.

The day promises to be quiet in our latitudes, the economic calendars and calendars of listed companies are practically empty.

At 11:05 the Swiss Market Index (SMI) fell by 0.09% to 12,085.01 points, the Swiss Leader Index (SLI) by 0.16% to 1,960.12 points and the Swiss Performance Index (SPI) by 0. 05% to 160,060.51 points. Of the thirty major awards, only five remained afloat, including three rating heavyweights.

Dobré and carrier Roche led the way, both gaining 1.0%. The multinational company in the blue hexagon visibly benefited from Bernstein’s increase in its price target.

Food processor Nestlé (+0.5%) ignored apparent concerns with its Perrier brand. The other pharmaceutical giant, Novartis, gained 0.2%. Biochemist Lonza (+0.8%) mixed in with the monsters, which added confidence to the price target increase, which was also extrapolated by Bernstein.

At the opposite end of the spectrum, luxury brands manager Richemont lost 2.2% without any specific data to suggest. There were also problems in financials, such as Partners Group and UBS (1.2% each), Swiss Life (-1.1%), Swiss Re (+0.8%) and Julius Bär (-0.7%). Zurich Insurance (-0.4%) fared relatively less badly, pushing back the start date of its next share buyback program to June 17, subsidized by 1.1 billion Swiss francs.

In the broader market, Molecular Partners soared another 13% after gaining more than 20% in early trading. The lab has seen preclinical success in mice. Idorsia gained 4.3%, a day after its AGM.

jh/fr/ex

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