2023-10-10 16:16:08
Zurich (awp) – The Swiss stock market ended on a positive note on Tuesday, with investors having regained some optimism. The SMI immediately crossed the 10,900 point mark and returned above 11,000 points during the last half hour of transactions and finished just above. Reassuring comments from officials of the American Federal Reserve on its rate policy are at the origin of this brightening while, the day before, the attack carried out by Hamas against Israel had led to an aversion to risk.
In New York, Wall Street gained ground in the morning, continuing the positive momentum of the day before. However, investors remained nervous about geopolitical risks as the corporate results season begins.
Yields on ten-year Treasury bills stood at 4.67% compared to 4.80% at the last session. Those at two years amounted to 4.97% against 5.08%.
Since Monday, “yields on Treasury bills have fallen the most since March due to conciliatory comments from members of the Federal Reserve and the demand for safe havens in the face of the Israeli conflict,” commented Art Hogan by B. Riley Wealth Management.
On the Fed side, two officials insisted that the tighter monetary conditions caused by the rise in Treasury bills could replace further increases in the central bank’s key rates.
The market also remains “nervous (…) following the Hamas attack against Israel this weekend, which gives rise to concerns about the possibility of an extension of the conflict into a regional conflict”, underlined Patrick O ‘Hare Briefing.
The SMI ended up 1.66% at 11,001.69 points, with a high of 11,009.70 and a low of 10,895.82 (opening). The SLI gained 1.87% to 1720.43 points and the SPI 1.64% to 14,365.85 points. Of the 30 star stocks, Sandoz (-1.3%) is the only loser of the day.
The podium is made up of VAT (+4.8%), Richemont (+3.9%) and Holcim and Givaudan (each +3.1%).
The vacuum pump equipment manufacturer VAT Group will reveal its commercial performance for the 3rd quarter on Thursday. AWP consensus analysts expect order intake of 174.7 million Swiss francs and a turnover of 211.3 million.
Swatch Group (+2.1%) also finished in the first part of the table. The day before, luxury stocks had suffered from investors’ bout of risk aversion.
On the eve of the publication of its 9-month sales figures, Givaudan benefited from an increase in its price target by Bernstein, who confirmed “underperform”. The analyst doubts a rapid rebound in the chemical sector as a whole, given the apathy of the global economy. He fears that this will prevent verniolan from achieving its medium-term objectives. As for the figures, AWP consensus analysts are counting on 5.31 billion in revenue and organic growth of 3.3%.
In the heavyweight camp, Nestlé (+1.9%) outperformed the index, while Novartis (+1.1%) and Roche (good +0.7%, buoyant +0.2%) underperformed. -perform.
Roche welcomed the success of the Balaton and Comino advanced clinical studies, evaluating Vabysmo (faricimab) against retinal vein occlusion (RVO). This ophthalmic treatment – already approved against neovascular age-related macular degeneration (AMD) and against diabetic macular edema (DME) – offers the advantage of extending the interval between two injections, compared to the method of administration of aflibercept marketed by the German Bayer and the American Regeneron under the name Eylea, without loss of effectiveness.
On the broader market side, Georg Fischer (+3.1%) announced the departure of vice-president of the board of directors Hubert Achermann. To succeed him, the supervisory body will propose to shareholders to elect Stefan Räbsamen at the general meeting of April 17, 2024.
Cosmo (+2.7%) has submitted an application for approval of its drug Winlevi to the European Medicines Agency (EMA).
Implementing the restructuring announced at the beginning of July, Dormakaba (+1.7%) will cut 183 jobs in Switzerland, out of the approximately 930 that the Zurich specialist in secure access has in Switzerland. The measure, which will take place by the 2025/26 financial year, does not, however, result in any site closures, the group being present in Rümlang and Wetzikon, in the canton of Zurich, as well as in St. Gallen and Mont- sur-Lausanne.
UBS lowered its recommendation for Adecco (+1.5%) to “sell”, after “buy” and significantly reduced the price target, now set at 32.50 Swiss francs, from 40 Swiss francs. The stock was also removed from the SLI index last week, following the IPO of Sandoz, the former Novartis division dedicated to generics and biosimilars.
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