2024-01-08 17:16:16
Zurich (awp) – The Swiss stock market started the week on a slightly positive note. After spending a good part of the morning in the red, the SMI recovered well and even managed to get back above the symbolic bar of 11,200 points, finishing near its highest of the day.
In New York, Wall Street was trading in disarray in the morning, with the Dow Jones weighed down by the decline in Boeing shares. The title of the aircraft manufacturer fell after the immobilization of dozens of its Boeing 737 MAX 9 aircraft following a door torn off in mid-flight.
On the macroeconomic front, the most important indicator of the week in the United States will be inflation with the CPI price index for December to be released on Thursday. This “should show a monthly increase of 0.3% in the price index,” estimated Art Hogan of B. Riley Wealth Management.
In Switzerland, the consumer price index (CPI) remained stable in December compared to the previous month. Over one year, inflation increased to 1.7%, after 1.4% in November. Over the whole of 2023, average annual inflation reached 2.1%, compared to 2.8% in 2022 and 0.6% in 2021.
Turnovers in retail trade picked up the pace in November, increasing by 1.6% nominal and 0.7% real year-on-year. Over one month, the increase is 0.6% (0.7% real).
The SMI ended up 0.40% at 11,230.40 points, with a high of 11,238.38 and a low of 11,124.02. The SLI gained 0.47% to 1772.00 points and the SPI 0.41% to 14,644.59 points. Of the 30 star stocks, 23 rose and 7 fell.
Sonova (+2.6%) precedes Logitech (+1.9%) and Alcon (11.6%) on the podium of the day.
Morgan Stanley raised Sonova’s recommendation to “overweight” from “equal weight” and sharply increased the price target to 307 from 255 Swiss francs. The analyst believes that the hearing aid specialist will perform above average. It is able to launch new products and management has the ability to act tactically with pricing.
Logitech benefited from an increase in its price target by JPMorgan, which confirmed “overweight”. As the consumption and spending cycle continues to normalize, the analyst expects revenues to rise.
ABB (+0.9%) is strengthening its activities in the field of water supply. The Zurich electrical engineering giant has acquired the Canadian optical sensor specialist Real Tech for an undisclosed amount. The transaction is expected to be under roof by the end of the current quarter.
Morgan Stanley lowered Straumann’s price target (+0.9%) and confirmed “underweight”. The company is heavily exposed to the consumer goods sector and is therefore suffering from the current sluggish environment. The outlook for dental implants has also deteriorated and the stock’s valuation level is historically high.
Geberit (+0.4%) did not suffer after Jefferies lowered the price target and confirmed “underperform”. The analyst wonders in particular about the prospects for 2024, on which Geberit should not give details when publishing the next turnover figures. It lowered its forecast again due to continued risks.
In the heavyweight camp, Novartis (+0.4%), Nestlé (+0.2% and the good Roche (+0.1%) gained ground. The carrier Roche (-0.4%) finished third biggest loser of the day, the red lantern going to SGS (-3.3%), behind Kühne+Nagel (-2.0%).
In an advanced clinical study, Novartis observed superiority of Scemblix over the current therapeutic standard for the treatment of patients newly diagnosed with Philadelphia chromosome-positive chronic myelogenous leukemia, after 48 weeks of treatment. The group will submit applications for approval in 2024.
Sika (-0.4%) reveals its 2023 turnover on Wednesday. According to AWP consensus analysts, sales are expected to have reached 11.4 billion Swiss francs, for organic growth of 2.0%.
On the broader market, Softwareone (-0.1%) is still in negotiations with the American fund Bain Capital, following an in-depth examination of its own situation (“due diligence”). The Nidwalden group emphasizes that it is not certain that these talks will lead to the submission of a merger offer.
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