FX.co ★ Swiss Market Ends Notably Lower

The Swiss market saw a significant decline this Thursday, mirroring a trend across European markets. Investors largely focused on updates regarding earnings, proceeding cautiously due to the uncertainty surrounding the Federal Reserve's interest rates.

The fact that the benchmark Swiss Market Index (SMI) ended lower by 110.13 points or 0.97% at 11,260.61—only about 25 points from the day's lowest point of 11,345.29—illustrates this downturn.

Company-wise, Straumann Holding witnessed a 2.59% fall, while Givaudan shares ended 2.02% lower.

Nestle also saw a decrease of 2.02% after the Swiss food and drink powerhouse failed to meet the estimated growth in organic sales for the first quarter. Their total sales during this period amounted to 22.1 billion Swiss francs—a drop of 5.9% from the previous year—with foreign exchange diminishing sales by 6.7% and net divestitures negatively impacting by 0.6%.

The company's organic sales growth at the group level for the quarter was 1.4%, led by performance in Europe and emerging markets. North America, however, had a negative impact. The pricing was 3.4%, following a high base of comparison in 2023.

Other Swiss companies such as Holcim, Swiss Life Holding, Lonza, and Alcon also saw losses ranging from 1.7 to 1.77%. Roche Holding, Sonova, Geberit, SIG Group, Swiss Re, Partners Group, Sika, and Richemont ended lower by 1.1 to 1.6%.

Tecan Group's losses were nearly 4%, while Georg Fischer, Temenos Group, Baloise Holding, Belimok Holding, and Avolta all experienced significant declines.

On the other hand, Novartis, Barry Callebaut, Lindt Spruengli, and the Swatch Group saw gains ranging from 0.7 to 1%. Meyer Burger Tech and ams OSRAM AG saw an increase of about 2% and 1.5%, respectively.