The Swiss stock market finished significantly lower on Wednesday, remaining below its starting point throughout the trading session. The market's struggle for support arose from concerns over economic growth and anticipation of the Federal Reserve's upcoming monetary policy announcement.
The diminishing sentiment was fueled by data revealing that Swiss retail sales had fallen for a sixth consecutive month in December. The benchmark SMI closed 109.75 points or 0.96% down at 11,333.38.
Leading pharmaceutical firm Novartis fell 3.45%, construction company Holcim dropped close to 2.5%, and chemical company Lonza Group and automation technology provider ABB fell by 1.8% and 1.66%, respectively. Plumbing parts manufacturer Geberit saw a decline of 1.3%, while luxury goods company Richemont lost 1.11%. Additionally, hearing solutions provider Sonova, food and drink corporation Nestle, flavor manufacturer Givaudan, and technology company Logitech International reported losses.
Roche Holding, Swiss Life Holding, Zurich Insurance Group, and Sika experienced marginal losses. Within the Mid Price Index, solar technology company Meyer Burger Tech plummeted 17.2%, while sensor manufacturer ams OSRAM AG saw nearly a 5% downfall. Industrial corporations Georg Fischer and SIG Combibloc also reported nearly 2.5% losses.
Dental implantology leader Straumann Holding, chocolate maker Lindt & Spruengli, chocolate manufacturer Barry Callebaut, private banking group Julius Baer, Zurich Airport operator Flughafen Zurich, and vacuum valve producer VAT Group experienced a loss between 0.8% and 1.6%.
Pharmaceutical company Sandoz marked a 2.65% rise. Staffing firm Adecco went up by 1%, while energy and infrastructure service provider BKW and insurance group Helvetia both increased by roughly 0.75%.
According to data from the Federal Statistical Office, Switzerland's retail sales, adjusted for sales days and holidays, depreciated by a working-day adjusted 0.8% year-on-year in December, a sharp contrast to the revised 1.5% fall in November. On a monthly basis, retail sales dropped a seasonally adjusted 0.6% in December compared to a rebound of 0.2% in the previous month.
In nominal terms, retail sales saw an annual rise of 0.1% while experiencing a monthly decline of 0.6% in December. Total retail sales in real terms for the full year in 2023 were 2% lower than in 2022.
