Zurich (awp) – The Swiss stock market was still in the red at the end of the morning, despite a brief foray into positive territory. This did not resist the sad spirit of the day, conditioned by the zero Covid policy in China, which weighs on its commercial data.
“Investors are struggling to digest the latest major developments in China, after poor economic data this morning canceled out last week’s market optimism that was fueled by hopes of easing health restrictions in China. Beijing.” , said Pierre Veyret of ActivTrades. Stockholders “expect another volatile week, punctuated by several speeches by Fed officials today, tomorrow’s US mid-term elections and Thursday’s highly anticipated US inflation report.”
In Switzerland, the labor market is resilient, with the unemployment rate stagnating at 1.9% in October. Conversely, the number of bankruptcies continued to rise last month, after two years of Covid credit to support struggling businesses.
At 10:56 am, the Swiss Market Index (SMI) lost 0.13% to 10,773.81 points. The Swiss Leader Index (SLI) gained 0.04% to 1626.69 points. The Swiss Performance Index (SPI) lost 0.02% to 13,755.43 points. Of the top thirty valuations, 16 were up, Richemont was stable, and 13 were down.
The first three remained composed of Logitech (+ 3.1%) and Straumann (+ 2.2%), accompanied this time by the volatile AMS-Osram (+ 1.9%).
Swisscom only gains 0.5%. Credit Suisse raised its recommendation to “neutral”, versus “underperform” earlier, based on the telecom company’s stable revenues and low leverage.
Julius Bär gained 1.2%, ahead of other UBS financials (+ 0.9%) and outpacing Credit Suisse (-0.4%).
Inspection and certification specialist SGS (-0.1%) announced an acquisition, for an undisclosed amount, to strengthen its analytical services portfolio for the Romanian food market.
Heavyweights weighed on the index, Roche down 0.2%, Nestlé down 0.4% and Novartis down 0.6%.
Schindler withdrew 0.8%. Stifel has lowered the target price by 65 Swiss francs, but continues to recommend buying the stock.
Givaudan was the last, without any particular indication, losing 1%.
In the broader market, DKSH (+ 1%) acquired two new drug brands in Asia-Pacific, which generate annual sales of over 15 million Swiss francs. The amount of the transaction was not disclosed.
The real estate company Allreal (+ 0.6%) is planning to build a complex of 19 houses in Zumikon, in the canton of Zurich, for an investment volume of around 40 million Swiss francs.
ck / lk / jh