Swiss Market Ends On Firm Note After Soft Inflation Data

Swiss Market Ends On Firm Note After Soft Inflation Data

The Switzerland market ended on a firm note on Thursday with bulk of its gains coming in late afternoon trade thanks to some strong buying at several counters.

Cooler than expected Swiss inflation data and optimism about interest rate cuts by come major central banks during the current quarter helped underpin sentiment.

The benchmark SMI ended with a gain of 74.26 points or 0.64% at 11,691.13, slightly off the day\'s high of 11,693.57.

Novartis climbed 2.84%. UBS Group and Sika gained 1.89% and 1.86%, respectively. Alcon ended with a gain of 1.57%, while Lonza Group, Partners Group, ABB and Swisscom gained 0.8 to 1%. Nestle advanced 0.57%.

Givaudan dropped nearly 2.5%. Swiss Life Holding ended 1.24% down, while Logitech International, Holcim and Geberit lost 0.9 to 1.1%. Swiss Re and Roche Holding also ended notably lower.

In the Mid Price Index, Ems Chemie Holding gained 1.86%, Julius Baer, Avolta, BKW and Temenos Group ended higher by 1.4 to 1.7%, while ams OSRAM AG and Swatch Group both gained about 1.25%.

SIG Group, Georg Fischer, Belimo Holding, Clariant and Barry Callebaut also ended on firm note.

Meyer Burger Tech dropped more than 5%. Sandoz ended nearly 2% down. Schindler Holding, Lindt & Spruengli and Tecan Group lost 1 to 1.2%.

Data from the Federal Statistical Office showed Swiss consumer price inflation unexpectedly weakened to the lowest since September 2021.

Consumer prices logged an annual increase of 1% in March, following a 1.2% rise in February. Economists had forecast prices to climb 1.3%. On a monthly basis, the consumer price index remained flat.

Core consumer prices gained 0.1% on month in March and increased 1% from the same period last year.

The soft inflation data has raised hopes the Swiss National Bank (SNB) will cut interest rate again this year. In March, the SNB unexpectedly reduced the policy rate by 25 basis points to 1.5%.

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