On Friday, the Swiss market experienced a significant downturn due to weak global indicators and mounting concerns over economic growth and geopolitical tensions, fostering a bearish sentiment.
The primary index, the SMI, initially showed a brief positive uptick but swiftly declined, maintaining a downward trajectory throughout the day's trading session. It concluded at 11,797.72, reflecting a decrease of 119.28 points, after hitting a session low of 11,775.75.
Swatch Group saw a notable decline of 7.75%, while Richemont fell by 6.6% following a reported 20% decrease in net profit for the first half of the year, dropping to 1.73 billion euros from the previous 2.16 billion euros.
Adecco experienced a 2.8% decline and Sika fell by 2.56%. Straumann Holding, UBS Group, and Logitech International also recorded losses ranging from 1.9% to 2.2%.
Other major players like Swiss Re, Roche Holding, Zurich Insurance, Swisscom, Julius Baer, and Nestle also ended in the red, with reductions between 0.6% and 1.1%.
Conversely, Lindt & Sprüngli rose by approximately 1.1%, while SGS and Sonova each saw a near 1% increase. Sandoz Group advanced by 0.73%, and Alcon, VAT Group, along with Lonza Group, achieved modest gains.
In terms of economic developments, a report from the State Secretariat for Economic Affairs indicated that consumer confidence in Switzerland improved slightly, reaching -37 in October 2024, an increase from -52.5 the previous year, though it still fell short of market expectations of -33. Meanwhile, the economic expectations index climbed to -30.1 from -51.9 in October 2023, reflecting a somewhat less pessimistic outlook on forthcoming economic conditions.
