ZURICH (Dow Jones) — The Swiss stock market fell sharply on Thursday in line with the neighboring stock exchanges. At the start of September, which is traditionally considered a weak stock market month, concerns about a recession as a result of excessive inflation and interest rate increases were fueled by new lockdown measures in China and economic data from the Middle Kingdom that signaled a recession.
The SMI lost 1.8 percent to 10,663 points. There were 18 price losers and 1 winner in the 20 SMI stocks, and the Swiss Re share closed unchanged. 34.13 (Wednesday: 35.99) million shares were traded.
The second weakest SMI value was Richemont with a minus of 4.5 percent. In the second row, Swatch became cheaper by 4.5 percent. Equities in the luxury goods sector suffered across the board from the lockdown for the city of Chengdu. According to analysts, China is of outstanding importance as a sales market for the industry. HSBC also downgraded Richemont’s rating to hold from buy.
At the bottom of the SMI list were equities from the financial sector such as Credit Suisse (-3.9%) UBS (-3.6%), with Partners Group (-4.6%) at the bottom.
Equities from sectors considered defensive and less dependent on the economy performed best. Swisscom even ended up slightly up, the prices of the health and pharmaceutical stocks Alcon, Novartis and Roche fell by up to 0.8 percent, the price of the food giant Nestle lost 1.4 percent.
For Zur Rose it went down by almost 11 percent. Despite statements to the contrary recently, the online pharmacy placed a convertible bond and increased the capital to service a maturing bond. According to analysts, this should initially calm the stock, but the company is undermining its own credibility with this type of communication.
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(END) Dow Jones Newswires
September 01, 2022 11:50 ET (15:50 GMT)
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