Swiss stock market climbs to a new all-time high
Keystone-SDA
The Swiss stock market hit a new record on Thursday. The benchmark SMI index rose briefly to just under 14,732 points during the morning, surpassing the previous high set in mid-August by a good 50 points.
On Thursday, the blue-chip stocks provided support for the SMI. Shares in the pharmaceutical group Novartis rose by 2% at around 9:50 am, those of the food giant Nestlé by 1% and those of the pharmaceutical company Roche by 0.5%. By contrast, shares in the building materials group Amrize plummeted by just over 5% following disappointing quarterly figures and a downward revision to its full-year forecast.
According to traders, the stock market rally of recent weeks is primarily due to a shift in investor sentiment. Investors are increasingly pulling money out of technology shares and investing instead in companies that are comparatively resilient to economic downturns. The Swiss stock market is benefiting particularly strongly from this, as pharmaceutical and food companies carry significant weight in the SMI.
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In particular, the heavyweights Roche, Novartis and Nestlé have recently driven the benchmark index higher. Their products remain in demand even in economically challenging times. Encouraging financial results from various Swiss companies provided further momentum on the stock market.
The Swiss stock market is thus proving resilient despite the war in the Middle East, high oil prices and mounting inflation concerns. This is because high energy prices are fuelling inflation and thereby increasing the pressure on central banks to keep interest rates high or raise them further. This is weighing particularly heavily on technology shares. Many of these companies are valued on the stock market on the basis of high profit expectations for the future. From today’s perspective, such future profits lose value when interest rates rise.
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Translated from German, reviewed by an English Department journalist.
