On Monday, the Swiss market concluded slightly higher following a turbulent session characterized by stock movement within a confined range. Concerns regarding Switzerland's growth outlook tempered market sentiment, with many investors opting to stand by in anticipation of the upcoming New Year holidays.
The Swiss market is scheduled to remain closed on Tuesday and will reopen on Friday.
The benchmark Swiss Market Index (SMI) experienced a brief positive phase from shortly after noon until the mid-afternoon, before dipping into negative territory. Nonetheless, with a few stocks rallying support in the final minutes of trading, the SMI closed with a modest gain of 11.56 points or 0.1%, finishing at 11,600.90.
Having reached a high of 12,483.57 in September, the SMI later retreated but still marked an overall annual increase of about 4.15% in 2024.
A key indicator of Switzerland's economic turning points declined in December, signaling a softening outlook following gains seen the previous month, as revealed by the KOF Swiss Economic Institute.
The KOF Economic Barometer fell more sharply than anticipated to 99.5 in December, down from a revised 102.9 in November, with expectations set at 101.1. After an increase in November, this latest reading is slightly below its medium-term average.
"The Swiss economy's outlook has dampened," stated the KOF.
All components of the barometer contributed to this negative trend. Indices related to manufacturing, other services, the hospitality sector, foreign demand, and private consumption notably decreased in December.
Stocks such as Swatch Group, Roche Holding, Adecco, Nestle, SIG Group, and Richemont saw increases, closing higher by 0.4% to 0.8%. Swiss Life Holding, Swisscom, and UBS Group also ended the session on a positive note.
Conversely, ABB saw a nearly 1% decline. VAT Group and Lindt & Sprüngli both decreased by approximately 0.7%. Additionally, Straumann Holding, Geberit, Lonza Group, Givaudan, Sika, Swiss Re, and Alcon closed weaker.
