Zurich (awp) – The Swiss stock market reacted on Thursday to the bear market from the previous day and started a strong upward movement. After a careful start, the reference index SMI rose step by step on the reporting day and bounced back over 8,800 points. The index was supported by the major banks' prize gains and heavyweight Novartis and Nestlé. Despite attractive quarterly figures, Roche's coupons made hardly any steps.
Concerns about rising interest rates, which have recently slowed down on the stock exchange, pushed investors further into the background on Thursday. However, a market watcher warned that US returns will continue to rise with Federal Reserve's more restrictive monetary policy. Meanwhile, the European Central Bank (ECB) maintained its expansion rate as expected. And even statements by ECB President Mario Draghi on monetary policy did not give the market any groundbreaking driving force.
The Swiss Market Index (SMI) closed trade by 1
The focus was on Roche (+ 0.2%), which only increased slightly. Although the pharmaceutical company can look back on a solid first quarter and increased its prospects for the full year. But this soothing pill was without effect. Rather biosimilar causes market nuisance with loss of patents, according to traders.
The share of Novartis's neighbor, however, increased 1.1 percent, while the securities of the third SMI-heavy Nestlé increased by 1.6 percent. Financing like Julius Baer (+ 2.4%) and the major banks UBS (+ 1.5%) and Credit Suisse (+ 1.3%) were also in good demand. CS had already posted significant profits the previous day after the quarterly results.
Partners Group (+ 2.8%) released SMI / SLI as winner of the day. Dealers referred to encouraging statements from company representatives regarding customer demand. These claims obviously attracted purchases from abroad.
Schindler gave a call (+ 0.5%). During the first quarter of 2018, the company improved its order intake, sales and earnings stronger than expected. Profitability was at the expected level, but was also critically demonstrated by some analysts, especially in terms of the future.
Swiss Life (-3.0% -10.60 CHF) was significantly lower but at 13 on the reporting date, 50 francs per share ex-dividend were traded.
In the broad market, dental implant manufacturer Straumann attracted interest. Straumann grew strongly again in the first quarter of 2018, increasing by 3.9 percent on the stock market. The bearings of the flywheel manufacturer Tornos (+ 4.4%) were even more positive after receiving large orders from different German car dealers. CPH gained 3.5%. Newspaper paper is getting worse and the periods of overcapacity in the industry are probably over, mentioned traders.
Bucher Industrial Group's paper (-0.7%) had a negative trend in the broader market, even though in the first quarter of 2018 it had increased sales and order intake. However, sales were somewhat below analytical estimates. SNB volatile shares (-6.7%) gave up some of the profits they had made recently.
At the same time, Beginner Asmallworld (-28%) made a massive decline. The German Federal Financial Supervisory Authority (Bafin) warned to purchase recommendations on Asmallworld with suspicions of incorrect or misleading information.
mk / cf