Zurich stock market: slightly in the red as midday approaches

ZURICH (awp) – The Swiss stock market slipped into the red near midday on Wednesday, although losses remained limited. Momentum will be limited as US markets remain closed for a public holiday and investors await Thursday’s monetary policy decision from the Swiss National Bank (SNB).

“In Britain, inflation returned to the Bank of England’s (BoE) target of 2%, leaving the way open for speculation that the BoE could announce a surprise rate cut at its meeting on Thursday. Sterling’s reaction was immediate and surprisingly positive,” noted Ipek Ozkardeskaya, Swissquote analyst.

In macroeconomic news, Japan’s exports jumped 13.5% year-on-year in May, its strongest growth in a year and a half, due to a weak yen, a factor also driving imports from the archipelago.

In the UK, inflation slowed to 2% year-on-year for the first time in nearly three years in May, returning to the Bank of England’s target, good news for the Conservative government as it seeks to pass the legislation.

Investors will also be interested in May inflation in the Republic of South Africa.

At 11:01, the SMI was down 0.11% at 12,034.78 points, the SLI lost 0.14% at 1,946.4 points and the SPI was down 0.13% at 15,986.12 points. Of the thirty star stocks, a dozen rose and 18 fell.

UBS fell 0.3%. The Federal Financial Market Supervisory Authority (Finma) has closed its cartel review in connection with the merger between UBS and Credit Suisse. It concludes that the concentration does not in any way threaten competition in any market segment.

Zurich Insurance (+0.2%) announced that it has taken control of Indian insurer Kotak General Insurance. The Zurich insurer thus concretizes the agreement in this sense agreed last November. The Zurich-based multinational company paid 5,560 crores or $670 million, or around 592 million Swiss francs, to acquire 70% equity in Kotaku.

Sandoz (+1.8%), Straumann and VAT Group (both +0.7%) took the lead in the preliminary ranking.

Among the three heavyweights were Nestlé (-0.2%), while Roche (shipper and profit margin: +0.2% each) and Novartis (+0.1%) climbed into the green.

Logitech (-0.8%) fell despite positive commentary from Stifel, which set a new price target of 84 Swiss francs after 72 Swiss francs.

At the bottom of the pack we found SGS (-1.7%), Schindler (-1.6%) and Julius Bär (-1.3%).

In the broader market, dermatology laboratory Galderma (+1.2%) announced the certification by the Swedish Health Police of its site in Uppsala for the production and evaluation of a form of botulinum toxin under development.

Cosmo (-0.3%) will be able to sell its Lumeblue methylene blue in China. Middle Kingdom China Medical System (CMS), to which the Swiss-listed Milan-based laboratory transferred the rights to Lumeblue for several Asian countries in 2020, has received approval for China.

For Komax (-1.2%), two establishments, Vontobel and Mirabaud Securities, lowered the price target for the cable machine manufacturer. Already the day before, the stock ended down 2.9% after announcing full partial unemployment at its branches in Dierikon in the canton of Lucerne and Chamu in the canton of Zug from July 1.

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