2023-11-23 17:16:03
Zurich (awp) – The Swiss stock market ended on a slightly positive note. After spending the morning in the red, the flagship SMI index recovered at the start of the afternoon and finished just below its highest of the day. We lacked impulses from the United States, where the markets were closed due to a public holiday (Thanksgiving).
On the Old Continent, private sector activity contracted in November for the sixth consecutive month, but less sharply than in October. “The euro zone economy remains mired in the crisis in November, with the manufacturing and services sectors each having, over recent months, posted a relatively constant rate of contraction in activity,” underlined Cyrus of the Rubia, chief economist of Hamburg Commercial Bank (HCOB).
“The worrying aspect of the report is the increase in average prices paid, driven by rising costs in the services sector,” said Christophe Boucher, investment director at ABN Amro IS. This indication could augur a resumption of inflation which “would put the European Central Bank in a delicate position” to maintain or lower its key rates.
In Switzerland, companies active in the machinery, electrical equipment and metals (MEM) sector are sticking their tongues out at the end of the year, reporting declining order books and an “unfavorable” business climate, but a glimmer of hope should appear on the horizon in 2024.
The SMI ended up 0.18% at 10,851.62 points, with a high of 10,853.52 and a low of 10,806.18 points. The SLI nibbled 0.08% to 1716.21 points and the SPI 0.12% to 14,228.78 points. Of the 30 star stocks, 17 rose and 13 fell.
Julius Bär (-2.0%) finished in last place, behind Swiss Life (-1.8%) and Logitech (-1.7%). Bank of America lowered its recommendation for the life insurer to “underperform”, from “neutral” previously, slashing the price target to 586 (625) Swiss francs.
For several days, the credits that Julius Bär would have granted to the Austrian group Signa have been fueling conversations. According to press articles, part of the loans are backed by shares of René Benko’s company which is threatened with bankruptcy.
The other bank UBS (+0.4%) supported the index.
Sika (-0.1%) will strengthen its polymer production at its American site in Sealy, Texas, to meet the growing demand for concrete admixtures in the United States and Canada. No amount has been disclosed.
At the other end of the ranking, the volatile Sandoz (+2.2%) which had held the red lantern the day before, precedes the carrier Roche (+0.9%) and Swisscom (+0.8%) on the podium of the day. The good Roche and Schindler (+0.7% each) share the chocolate medal.
Novartis (+0.3%) also gained a little altitude, while Nestlé (+0.04%) finished almost in balance.
Sonova (+0.5%) saw its price target raised to 255 (235) Swiss francs by Morgan Stanley, which revised its earnings per share estimates upwards in the wake of the results for the first half of 2023/24, while remaining neutral on the title.
The French Court of Cassation will issue its decision on January 16, 2024 on the appeal filed in May 2022 by the French cement manufacturer Lafarge, in the hands of the construction materials giant Holcim (+0.2%), in the Syrian case. The Court does not look at the merits of the case but verifies that the law was correctly applied.
On the broader market, Carlo Gavazzi (-3.1%) saw its revenues and order intake decline during the first six months of its staggered 2023/24 financial year (April to September).
Epic Suisse (+1.6%) recorded increasing figures over the first nine months of 2023, particularly in terms of rental income.
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