The Swiss Market Index (SMI) recovered from early losses to finish Friday’s session 0.62% higher at 14,456.98 points, paring a weekly gain to 0.5%. Trading ranged from an intraday low of about 14,280 to a high of 14,474, reflecting elevated volatility around the monthly expiry.
The afternoon rebound was driven by large-cap pharmaceutical stocks Roche and Novartis, which had been sharply lower earlier in the day before turning positive. Both shares posted weekly gains that more than reversed the prior week’s declines. Migros Bank separately highlighted Roche and Novartis as potential beneficiaries of Switzerland’s expanded free-trade agreement with China, alongside Richemont and Swatch, which also advanced 1.5% and 0.8% respectively. China remains a key market for all four companies, though demand has softened in recent months.
Cyclical and materials shares led broader gains, with Kühne+Nagel rising 2.8%, Geberit 1.4%, Sika 1.0% and Holcim up 0.9% following its €840 million acquisition of Germany’s Fermacell. Vetropack surged 9.5% and Siegfried added 2.7% after reporting results, while Georg Fischer gained 3.3% after Research Partners upgraded its rating to Buy.
The positive close followed a mixed week for the SMI, which had opened lower on Friday and briefly pointed to a weekly loss before the late rebound. Improved European consumer confidence and a firmer U.S. equity open contributed to the turnaround, traders said. The index’s recovery contrasted with ongoing concerns about the macro outlook, though UBS’s Investment Office maintained a constructive base case, citing resilient AI spending, steady corporate earnings and easing inflation pressures.
Brent crude held above $94 a barrel, up from under $80 at the start of the month, as geopolitical risks in the Middle East persisted. U.S. President Donald Trump’s pledge to intensify economic pressure on Iran added to supply concerns, keeping oil prices elevated despite the broader market’s late-session gains.
