ZURICH (Dow Jones) — The Swiss stock market did not really move on Wednesday either, even though the SMI climbed above the 11,000 mark again. While the European stock exchanges rose significantly in the wake of unexpectedly low US inflation data, the Swiss stock exchange only managed a modest plus. Once again, sales by the defensive heavyweights slowed things down, but the Swiss franc, which was very strong against the dollar, also prevented the stock market from catching up with its European counterparts. The SMI rose by 0.5 percent to 11,019 points. Among the 20 SMI stocks, 16 price winners and four losers faced each other. 15.84 (previously: 14.79) million shares were traded.
US consumer price inflation came in lower than expected, with the core rate falling to its lowest level in almost two years. “This is the longed-for liberation,” rejoiced portfolio manager Thomas Altmann of QC Partners. In trading, the focus was on the US interest rate peak being reached soon and the tightening of monetary policy coming to an end in the near future. Rising bond prices pushed down yields, and the dollar came under pressure – also against the franc.
The market was slowed down by sales at Novartis (-0.6%) and Nestle (-0.4%). At Swatch (+1.5%) and Richemont (+2.5%), investors are banking on positive business figures that are due soon. Across Europe, technology stocks (+2.7%) were among the favorites after analysts at Jefferies gave positive comments on the sector. AMS-Osram, Temenos and VAT increased by up to 6.6 percent. Schindler also rose after a major order from Saudi Arabia – by 2.2 percent.
Swiss Re gained 1.5 percent. The reinsurer had found a successor for the resigned Chairman of the Board of Directors, Sergio Ermotti. Vice President Jacques de Vaucleroy was proposed for election at the next General Assembly in April 2024.
U-Blox shares are up 5.7 percent. This equalized the previous day’s minus of around 5 percent. This was probably due to the profit warning from the competitor Sensirion, according to Baader Helvea. For the first half of the year, the analysts attest a strong sales development in view of the rather difficult and challenging end markets. With regard to Sensirion, it is also noteworthy that the outlook for the current financial year has been confirmed. Kudelski climbed 1.2 percent. The order from the US Department of Defense was rated positively. At Kinarus Therapeutics (-4.4%), interim CFO Subhasis Roy leaves.
Contact the author: [email protected]
DJG/flf/cln
(END) Dow Jones Newswires
July 12, 2023 11:44 ET (15:44 GMT)
Selected leverage products on ams AG
With knock-outs, speculative investors can participate disproportionately in price movements. Simply select the desired lever and we will show you suitable open-end products on ams AG
Leverage must be between 2 and 20