On Thursday, the Swiss market experienced a decline, largely fluctuating in negative territory, as investors processed the European Central Bank's monetary policy announcement and anticipated quarterly earnings reports.
The SMI benchmark index concluded the session down 86.32 points or 0.7%, closing at 12,247.61. After a brief initial rise, the index plummeted to 12,234.44 within half an hour and maintained a downward trajectory for the remainder of the day.
Among the major movers, ABB saw a significant drop of 5.6% following a 3% decline in orders, which fell to $8.44 billion in the second quarter from the previous year's $8.67 billion. VAT Group experienced an even steeper decline, plunging 9.4%. Despite Novartis raising its profit guidance, its shares fell by 4%.
Other notable losses included Logitech International, Partners Group, and Richemont, which decreased between 1% to 1.25%. UBS Group and Sonova both ended almost 0.9% lower, while Alcon and Holcim slipped by 0.65% and 0.45%, respectively.
On the positive side, Swatch Group shares advanced by 3.12%. Lonza Group and Roche GS also saw gains, climbing 1.65% and 1.61%, respectively. Sika, Geberit, SIG Group, Lindt & Sprüngli, Julius Baer, Straumann Holding, Nestle, and SGS registered gains ranging from 0.6% to 1.1%.
Economic data from the Federal Customs Administration indicated a rise in Switzerland's foreign trade surplus during the second quarter, driven by an increase in exports amidst a decline in imports. The trade surplus grew to CHF 12.4 billion from CHF 9.4 billion in the first quarter. During the same period last year, the surplus stood at CHF 9.05 billion.
Export growth in real terms accelerated to 3.5% in the June quarter, up from 1.1% in the previous quarter. Concurrently, imports fell by 0.8%, contrasting with a 1.6% recovery seen in the first quarter. Nominal exports reached a new high, growing by 6.6% in the June quarter.
In the month of June, the trade surplus increased to CHF 4.9 billion from CHF 4.2 billion in May. Nominal exports saw a 1.2% monthly rise, while imports decreased by 2.2%.
Additionally, a report from the Federation of the Swiss Watch Industry revealed a 7.2% yearly decrease in watch exports, which amounted to CHF 2.3 billion in June. There was also a 3.3% decline in sales during the first half of the year compared to the same period in 2023.
