Zurich (awp) – The Swiss stock market started the week on a positive note. The SMI crossed the symbolic threshold of 11,400 points and closed at the day’s high. In Switzerland, the attention of investors was captured by the information published by the blue chips Temenos and Sika.
Due to Martin Luther King Day, markets have been closed in the United States.
On the macroeconomic front, we will have to wait until Tuesday to learn about Chinese growth in the last quarter of 2022, November employment statistics in Great Britain and the German ZEW barometer for January which measures investor sentiment.
The American agenda for the week is also very rich: in addition to the continuation of corporate results, it will include the monthly Empire State Index (Tuesday), which measures manufacturing activity in the New York area, the producer price index and the US retail sales as well as the US Federal Reserve (Fed) Beige Book (Wednesday).
Last week, investors welcomed lower inflation in the US, which bolsters investor hopes for monetary policy moderation in the world’s largest economy in 2023.
However, “central bankers are unlikely to let a stock market euphoria take hold that would frustrate their desire to tighten financial conditions”, warn the experts of Apicil Asset Management.
The SMI closed up 1.29% at 11,435.99 points, the day’s high and low at 11,307.97. The SLI gained 1.37% to 1769.91 points and the SPI 1.28% to 14,677.15 points. Of the 30 stellar stocks, Logitech (-0.4%) is the day’s only loser.
Today’s podium is made up of Temenos (+8.9%), Partners Group and Sika (each +3.5%) and Straumann (+3.0%).
The banking software publisher saw its profitability decline in the fourth quarter of 2022. While revenues declined only slightly year-over-year, operating performance was reduced by more than a quarter. In the process, the Geneva-based company announced the departure of CEO Max Chuard and the imminent replacement of its chairman Andreas Andreades, which obviously delighted investors.
Credit Suisse analysts lowered the Zug-based asset manager’s price target to 1,050 Swiss francs from 1,100 Swiss francs previously, while the recommendation remained at “outperform”. The analyst trimmed his expectations for new cash inflows in the first quarter of 2023 in the wake of last week’s data released by Partners Group.
The construction chemist has sold the additives business of the MBCC group to Ineos Enterprises, allowing the Zug-based company to move forward with the completion of the acquisition of this unit from the German BASF. Sika confirmed that the acquisition of the latter, which should be finalized in the first semester, should generate synergies of 160 to 180 million. Berenberg also lowered its price target and Jefferies raised it, both with a “buy” recommendation.
In the heavyweight field, Novartis (+2.0%), did better than Nestlé (+1.1%) and Roche (+1.0%).
The Veveysan giant has announced the shedding of a hundred jobs at the English site of Nescafé Dolce Gusto in Tutbury, one of the three European establishments of this range of coffee capsules. He explains that he is facing a decline in demand.
In the banking sector, Credit Suisse (+1.7%) continues its recovery step by step. Good progress also for UBS (+1.6%) and Julius Bär (+1.2%).
In the broader market, Tecan (-2.2%) lost ground after Kepler Cheuvreux reduced its recommendation to “hold” from “buy” while raising its price target. The expert believes that structural growth prospects are good. The stock is currently fairly valued and the upside potential is limited.
Molecular Partners (+1.6%) has given a first patient the investigational treatment Darpin against acute myeloid leukemia, marking the start of a phase I clinical study.
Ypsomed (+10.0%) rose after Credit Suisse lifted its recommendation of “outperform” from “neutral” and sharply raised its price target to 235 from 165 Swiss francs.