Roche, Novartis and Nestle Quarterly Reports
On Tuesday, the Swiss stock exchange, with the other trading venues, set out on a clear recovery from the heavy levies of the past week.
After a cautious opening, the benchmark index SMI initially surpassed the 8’700 mark and temporarily broke 8’800 points in the late afternoon with support from strong US exchanges. Good corporate results for the third quarter provided a boost from the USA.
Clear earnings growth in the current reporting season could revive investor confidence and drive better market performance, a market commentator said. In this country, the three stock exchange heavyweights Roche, Novartis and Nestle will present their quarterly reports on Wednesday and Thursday. On Tuesday, political tensions on the stock markets as well as weak European economic data faded into the background.
The Swiss Market Index (SMI) closed 1.64 per cent up to 8’794.97 points, slightly below the daily high of 8’804 points. The 30-share Swiss Leader Index (SLI) rose 1.61 percent to 1’402.74 points and the broad Swiss Performance Index (SPI) jumped 1.71 percent to 10’393.04. Of the 30 most important titles, 29 closed in the plus and with Sonova only one title in the minus.
Strong gains came from technology stocks that were still shaken last week, such as AMS (+ 6.4%), Temenos (+ 5.2%) and Logitech (+ 2.3%). The technology sector has recently suffered particularly badly from the bad mood in the market, it said in the trade. AMS was also supported by a positive comment from the Liberum analysts.
The shares of pharmaceutical supplier Lonza (+ 3.6%) and Vifor Pharma (+ 3.2%) also closed on a firmer footing. However, profits above the market average were also recorded in some typical cyclical stocks such as Schindler (+ 3.0%), Givaudan (+ 2.8%) or the watch values Richemont and Swatch (+ 2.2% each).
Swisscom (+ 1.8%) was again able to gain a clear share after having withdrawn from trading on Monday as the strongest SMI stocks. In the market rumors about a transaction in Italy were referenced: The news agency Bloomberg had reported that the Swiss telecom group is examining options for its Italian subsidiary Fastweb.
Among the SMI heavyweights, Roche (+ 2.3%) rose significantly in the run-up to the quarterly results due tomorrow. The shares of competitor Novartis (+ 2.0%) and the food group Nestlé (+ 1.4%), who will present their report on the third quarter on Thursday, also closed on a firmer footing.
Credit Suisse (+ 0.6%) and UBS (+ 0.5%), on the other hand, were less than impressed by the positive quarterly figures of the US investment banks Goldman Sachs and Morgan Stanley. Other weaker stocks included the Swiss Life (+ 0.7%) and Zurich and Swiss Re (both + 0.6%) insurance companies, which were still sought after the previous day.
Sonova (-2.9%), the only losers in the SMI / SLI, experienced a roller-coaster ride. The hearing care specialist held an investor day on Tuesday, announcing a new hearing aid platform. Dealers, however, missed a confirmation of the annual forecasts by the company. Most recently, the tracks were burdened by the entry of the US speaker specialist Bose in the hearing aid market.
U-Blox (+ 6.7%) and other companies, including the shares of the pharmaceutical company Basilea (+ 4.3%), benefited from a positive analyst study. Conzzeta (-1.1%) fell after submission of quarterly figures.