Swiss equities: SMI remains below 12,000 points - waiting for the US Federal Reserve

Zurich - The Swiss stock market worked its way through the 12,000 SMI point mark all day on Wednesday, but never cracked it. Shortly before the end of trading, however, a new record was set. The investors had waited for the meeting of the US Federal Reserve today after the market closed, said traders. The Fed should not turn the interest rate screw. The main interest is therefore in the statements made by the monetary authorities on the subject of inflation.

Because investors are worried that the US Federal Reserve could begin to cut back on its bond purchases. So far, however, this speaks of a merely temporary phenomenon with a view to inflation. There is currently some economic data from the USA to digest. Data on construction starts and permits as well as import and export prices from May were published.

In the middle of the week, the SMI closed 0.50 percent higher at 11,982.03 points. The new all-time high is now just under 11,996 points. The SLI, which contains the 30 most important stocks, rose by 0.36 percent to 1937.71 points and the broad SPI by 0.43 percent to 15,373.92. In the SLI there were 19 winners versus 11 losers.

At the top of the winners were the two defensive pharmaceutical heavyweights Roche (+ 1.1%) and Novartis (+ 1.0%) as well as the insurers Zurich (+ 1.1%), Swiss Life and Swiss Re (+ 0.9 each %). According to retailers, a tactical buy recommendation from UBS helped a little in the insurance industry.

The pharmaceutical supplier Lonza (+ 0.8%), as well as the more cyclical Sika (+ 0.7%), Holcim (+ 0.8%), Clariant (+ 0.6%) and Adecco (+0, 4%). However, the defensive values of Swisscom were also well ahead (+ 0.8%).

Meanwhile, the big bank shares turned into the red after a positive start in the course of the day. Credit Suisse closed 0.6 percent lower and UBS lost 0.7 percent. Julius Baer's securities were also 1.0 percent cheaper. According to an analyst at JPMorgan, CS shares are trading at a discount to the competition. Issues such as legal disputes, Archegos, Greensill or the threat of stricter regulation had a negative impact.

In the broad market, Meyer Burger (+ 14.4%) and Swissquote (+ 18.8%) stood out with massive profits. The manufacturer of solar cells has obtained fresh capital for the planned restructuring of the company. The outlook for the high expected growth in the EBITDA margin in the coming years also attracted applause.

The online broker Swissquote, in turn, is benefiting from the stock market boom and has seen a massive influx of new customers and new money since the beginning of the year. The company therefore promised record results for the first half of the year. In addition, the previous guidance for the full year is to be revised upwards significantly.

On the other hand, things went downhill for Bachem (-6.7%) after the title had rushed from record to record recently. Market participants reported noticeable shifts in Lonza. Traders would not be surprised if the paper would soon be downgraded by an analyst, it said.

Sulzer (-0.5%) started the day well. In the end, however, part of the previous day's profits (+ 3.7%) was reassigned. A well-received investor event triggered purchases on Tuesday.

 


SMI, Swiss Equities, Swiss Exchange
 
Image by: Le Bijou
 
News source: https://www.awp.ch