ZURICH (Dow Jones) — The stock market in Switzerland closed slightly easier on Thursday. Investors focused their attention primarily on the reporting companies as the earnings season now picks up steam. In view of the sharp losses in Credit Suisse and the price drop of some heavyweights, the positive trend on Wall Street on Thursday did not materialize. US stock markets closed lighter on Wednesday as some Fed officials stressed the need for further rate hikes. German inflation data for January, which remained below the double-digit level recorded from September to November, provided a friendly boost to the neighboring exchanges.
The SMI lost 0.5 percent to 11,218 points. Among the 20 SMI values, ten price losers and nine price winners faced each other, with Partners Group closing unchanged. 137.8 (previously: 46.22) million shares were traded. According to figures, Credit Suisse shares were under massive selling pressure. “The numbers are even weaker than feared,” said one market participant about Credit Suisse. The loss is higher and the income lower than expected. In addition, there are still high outflows of funds. “The acquisition of Klein Group is certainly not a game changer,” he says, referring to the $175 million purchase price. The stock plummeted nearly 15 percent.
Zurich Insurance lost 2.7 percent. According to Citigroup, the combined ratio fell short of expectations in the second half of the year as a result of structural effects and the private customer business, but the company’s outlook is still supportive. Otherwise, operating profit is largely in line with consensus expectations.
Swisscom gained 3.4 percent, also based on figures. Citigroup said the solid performance and outlook could trigger calls for a higher dividend. The outlook indicates a strong fundamental development. The company expects an EBITDA of 4.6 to 4.7 billion francs for this year, the consensus so far is only 4.4 billion. Initially, however, Swisscom only confirmed the expected dividend of 22 francs. The SMI was also kept in the red due to the weakness of Nestle (-1.3%) and Roche (-0.8%).
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(END) Dow Jones Newswires
February 09, 2023 11:41 ET (16:41 GMT)
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