The Swiss market ended Thursday on a strong note, sustaining its recent upward trajectory, fueled by an uptick in Swiss business confidence. This positive sentiment was further bolstered by an interest rate reduction by the European Central Bank and generally favorable trends across other European markets.
The SMI, Switzerland's benchmark index, closed with a gain of 74.22 points, or 0.59%, settling at 12,604.54.
According to a report from the Swiss Economic Institute, business confidence in Switzerland rose to 101.60 points in January 2025, up from December 2024's figure of 99.60 points.
Data from the Federal Customs Administration indicated a significant rise in Switzerland's foreign trade surplus for 2024, driven by record-breaking export growth and a downturn in imports. The trade surplus reached CHF 60.6 billion in 2024, up from CHF 48.3 billion in the previous year. In nominal terms, exports increased at a record pace of 3.2% in 2024, contrasting with a 1.3% decline the year before.
Among individual stocks, VAT Group saw an impressive climb of over 5%, while Schindler Ps advanced 2.6%. Swatch Group rose by 2.25%, and Lonza Group closed up by 2.04%.
Roche Holding registered gains exceeding 1.5%, following announcements that its core operating profit surged by 14%, equating to an 8% rise in Swiss francs, reaching 20.8 billion francs. Core earnings per share (EPS) climbed to 18.80 francs from 18.57 francs, reflecting a 12% increase, excluding the prior year's tax dispute resolutions. Including this base effect, core EPS grew by 7%.
Meanwhile, Sandoz Group, Lindt & Sprüngli, Logitech International, Alcon, Richemont, Geberit, and Partners Group recorded gains ranging from 1% to 1.7%.
On the downside, ABB experienced a dip of 1.84%, even as it reported increases in profits, revenue, and orders for the fourth quarter. Net income attributable to ABB rose 7% to $987 million, up from $921 million the previous year, with basic earnings per share increasing to $0.54 from $0.50.
Conversely, Adecco and Swisscom fell by 0.9% and 0.67% respectively, while Zurich Insurance Group, SGS, and Swiss Re registered slight declines.
