2023-10-31 10:31:07
Zurich (awp) – The Swiss stock market continued its negative development on Tuesday morning, investors opting for caution before the meeting of the American Federal Reserve (Fed) and in the face of a burst of macroeconomic data and company results. The conflict in the Middle East also weighed down the morale of those involved.
Apart from the Fed’s monetary policy decision expected on Wednesday evening, investors will also be attentive to the new issuance program from the US Treasury which will also be published on Wednesday, underlined John Plassard of Mirabaud Banque. “In recent weeks, investor demand for Treasuries has shown signs of weakness, even as growing government deficits flood the market with new debt,” he added in a commentary.
“The situation in the Middle East kept investors in a situation of permanent caution”, with little hope of soon seeing a truce in the clashes between Israel and Hamas in the Gaza Strip, the analyst said. by CMC Markets Jochen Stanzl.
Speakers will also have to look at growth and inflation in the euro zone. In China, manufacturing activity came to a halt in October, after several months of progression, according to the Purchasing Managers’ Index (PMI), a new sign that the recovery of the world’s second largest economy remains fragile.
On the Swiss Stock Exchange, the flagship SMI index fell around 10:38 a.m. by 0.13% to 10,367.59 points, after having opened down 0.12%. The SLI rose 0.3% to 1,617.62 points and the SPI gained 0.03% to 13,579.91 points.
The majority of star stocks remained in the green, with the trio Richemont (+1.9%), Givaudan (+1.6%) and VAT Group (+1.6%) at the top of the ranking.
Logitech (+1.5%) accelerated again, after the announcement Monday evening of the recruitment of a new boss. Hanneke Faber will take up her position on December 1st.
Straumann (+1.3%) held its own. The supplier of implants and surgical-dental devices benefited from solid demand in the third quarter, with revenue rising 3.7% to 570.6 million Swiss francs.
On the other hand, the Roche dividend certificate (-3.4%) amplified its losses. The pharmaceutical group suffered a failure in the “Embark” clinical study devoted to Duchenne muscular dystrophy (DMD), which did not reach the primary endpoint. JPMorgan subsequently lowered the share price target.
The two other heavyweights Novartis (+0.3%) and Nestlé (+0.2%) rose modestly.
The news in the broader market was very lively. AMS Osram (-2.4%) reversed the positive trend of the morning. Between July and the end of September, the group generated a turnover of 904 million euros, down a quarter over a year, but up 6% over a quarter.
Vontobel (+1.0%) observed a decline in assets under management in the third quarter. The influx of money into asset management has particularly weighed on the performance of the Zurich establishment.
Ems-Chemie (+2.0%) saw its revenues decline by almost 10% on an annual basis during the first nine months of 2023, facing a deterioration in the economic context and the strength of the franc.
Gurit (+7.0%) accelerated briskly. The St. Gallen manufacturer of composite materials will supply them with various basic products over a period of three and four years for a total amount of around 375 million Swiss francs.
Cicor (-0.2%) secured new financing for its growth by renewing a syndicated loan. The funds may be used in part to make acquisitions.
Basilea (-0.3%) has acquired exclusive rights from its Korean counterpart Intron Biotechnology as well as a buyout option on the experimental antibacterial treatment tonabacase. The financial details of the operation are subject to a confidentiality clause.
Leclanché (-3.5%) improved its revenues thanks to a larger order book and reduced its loss during the first six months of 2023 in annual comparison. The majority shareholder agrees to maintain the status of the convertible loan without immediate conversion “in order to safeguard the interests of minority shareholders”, according to the document.
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