Zurich Stock Exchange: weekend in the red, SMI below 12,100 points

Zürich (awp) – The Swiss stock market ended negatively on Friday. After a still positive start to the session, the SMI turned red and hit the low of the day shortly after noon and below 12,000 points, which subsequently reduced its spending and ended slightly above this level.

In New York, Wall Street, which opened lower, moved in disarray in the morning. According to brokers, we are witnessing a consolidation move after a series of records and before we learn more about the development of the US economy.

“The market has been going full speed in the last few days”, pointed out Quincy Krosby of LPL Financial, for whom the time of ebb has come. Moreover, it “is driven by only a handful of values,” almost all of which come from the technology sector, fueled by generative artificial intelligence (AI) fever.

“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,” commented 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, held 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.

In Switzerland, the number of road vehicle entries stagnated in May. It grew by at least 0.1% for the year.

The SMI ended down 0.42% at 12,044.59 points with a low of 11,981.82 and a high of 12,113.49. SLI lost 0.78% to 1948.08 points and SPI lost 0.46% to 15,993.96 points. Of the 30 star stocks, 23 declined and 7 advanced.

Good Lindt (+1.4%) overtook Novartis (+0.8%) and Roche good and porter (+0.7% each) topped the day’s podium with a gain of 0.2% to take the Nestlé chocolate medal.

Bernstein SG raised the price target on Bon Roche and affirmed “outperform”. The stock has recently started a recovery after hitting a five-year low, commented an analyst who expects to continue in the right direction.

In France, according to French media, production of Perrier sparkling water bottles in the hands of Nestlé Waters would be suspended. A subsidiary of food giant Vevey mentions “maintenance operations” on two wells.

In the camp of losers, Logitech (-3.1%) finished at the bottom, behind Sika (-2.7%) and SGS (-1.9%).

The Valdo-California maker of pointers and other computer accessories announced Thursday evening the appointment of Meeta Sunderwal as interim chief financial officer (CFO), effective immediately. He replaces Charles Boynton, who left the company at the end of May after just one year in the role, until further notice.

Luxury shares Swatch (-1.8%) and Richemont (-1.5%) significantly underperformed.

Zurich Insurance (-0.3%) will begin its share buyback program announced at the beginning of the year on Monday. It covers a volume of securities with a maximum value of 1.1 billion Swiss francs. The program will end no later than December 31, 2025.

In the wider market, the Lucerne dairy group Emmi (+0.9%) announced the appointment of Oliver Wasem to the position of CFO as of July 1. He replaces Sacha Gerber, who resigned, and joins the general management of the Lucerne milk processor.

Molecular Partners (+12.5%) saw success in the development of its experimental treatment MP0621, a therapy that supports hematopoietic stem cell transplantation (HSCT). After conclusive trials in “humanized” mice, a Phase I clinical trial should begin next year.

Technology group Wisekey (unchanged) announced the arrival of John O’Hara as chief financial officer on July 1, following the retirement of incumbent Peter Ward at the end of June.

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