Swiss stocks performed admirably on Friday, continuing the upward trend from the previous session. This surge was bolstered by encouraging earnings reports and the prospect of another rate cut from the Swiss National Bank.
The benchmark SMI concluded the day with a gain of 91.33 points, or 0.76%, settling at 12,037.99, just shy of the intraday peak of 12,046.39.
Richemont shares surged by 5.31% following the announcement of significant changes to its board and management team. The company reported a 3% increase in group sales, rising to 20.62 billion euros at actual exchange rates, with a return to profitability for the fiscal year ending March 31.
Richemont attributed the record sales primarily to its Jewellery Maisons segment, which includes the Buccellati, Cartier, and Van Cleef & Arpels brands. Additionally, the company's board proposed a 10% increase in the dividend, pending shareholder approval, to be paid out in September.
Among other notable performers, Swatch Group advanced 2.57%, and Swiss Re gained approximately 2.3%. Givaudan concluded 1.78% higher, while Nestle saw a 1.3% uptick.
Roche Holdings, Logitech International, Novartis, and Lindt & Sprüngli recorded gains between 0.7% and 1%. Zurich Insurance Group and UBS Group posted modest gains as well.
Conversely, Swiss Life Holding fell by 5.43%. Sonova, Straumann Holding, VAT Group, Partners Group, and Kuehne & Nagel experienced declines ranging from 1% to 2%.
According to the Federal Statistical Office, Switzerland’s industrial production dropped 3.1% year-on-year in the first quarter of 2024, following a revised 0.5% decline in the previous quarter. On a seasonally adjusted quarterly basis, industrial production decreased by 1% in the first quarter of 2024, compared to a revised 1.1% fall in the prior quarter.