Swiss benchmark index SMI climbs to an all-time high
Keystone-SDA
It was a record-breaking day on the Swiss stock market on Wednesday. The benchmark SMI index climbed above the 14,000-point mark during a rally and, in the early afternoon, broke the all-time high set in February.
In a market with little news, it was the defensive heavyweights that gave the local stock market a boost. Investors continued to exercise caution with regard to tech stocks, which had recently come under pressure.
The SMI rose by a significant 1.49% to 14,117.75 points, with the new all-time high now standing at 14,142.38 points.
“The SMI’s surge to new highs is encouraging, but is primarily driven by the strong blue-chips,” said one trader, summarising the situation. A glance at other European stock markets also illustrates this. The FTSE 100 in London gained just 0.3%, whilst the DAX in Frankfurt actually fell by 0.6%.
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The heavyweights Roche (+2.1%), Novartis (+0.8%) and, above all, Nestlé (+3.3%) contributed significantly to the SMI’s rise. Defensive stocks had already been in high demand the previous day.
Clear price rises were also seen in Givaudan (+4.4%) and, buoyed by positive analyst comments, in Richemont (+4.0%) and Kühne+Nagel (+3.5%). By contrast, shares such as those of Holcim (-1.6%) and the major bank UBS (-1.3%) tended to weaken.
However, the trader warned that the environment for equities remains characterised by uncertainties, such as the situation in the Middle East, rising interest rate expectations in the US, a possible tech bubble or US tariffs.
“We expect trading to be characterised by volatility over the coming weeks, partly because trading volumes are declining,” said the trader. At least the peace talks in the Middle East appear to be bearing fruit, as reflected in falling oil prices.
Translated from German sub-edited by jdp
