Swiss equities drifted lower on Monday as the Swiss Market Index (SMI) fell 0.24% to 14,369.89 points in a tight, directionless session. The index has gained roughly 8.5% since the start of the year and is trading about 40 points above its late-July close, leaving it on track for a positive August finish.
The broader Swiss Performance Index (SPI) and the mid-cap SMIM also declined, down 0.18% and 0.44% respectively. Defensive sectors such as insurance and telecoms provided support, with Swisscom and Novartis among the gainers. Roche lagged with a 0.5% decline, while Nestlé slipped 0.1%. Blue-chip volatility remained subdued, with no component moving more than 1%.
Holcim led SMI decliners at -1.5%, followed by Lonza and ABB at -0.9% and -0.6% respectively. Logitech advanced 0.5%, while Kühne+Nagel rose 0.7% after earlier gains. Accelleron slumped 4.0% amid continued volatility. Zurich Airport recovered 0.7% from Friday’s 7.7% drop following earnings, with Vontobel maintaining a buy rating despite a modestly reduced target.
UBS shares fell 0.2% as Switzerland’s upper house commission reviewed proposed regulations, with reports suggesting dilution of the government’s proposals. The stock had reached a new 2025 high on Friday. Analysts noted that any regulatory changes could dilute shareholder value.
Gurit surged 4.2% after UBS raised its price target to CHF 49 from CHF 43, maintaining a buy rating. The bank cited slower growth in wind materials by 2027 due to the removal of one-off effects, though long-term contracts and defense markets were expected to support earnings. Wind and defense accounted for 50-60% of group revenue.
In broader markets, Brent crude oil rose 3.3% to $90.98/bbl as US strikes on Iranian targets and retaliatory action heightened regional tensions. Analysts at DBS expect oil to trade between $85 and $95/bbl in the near term, citing delays in negotiations over the Strait of Hormuz as a key factor. The escalation followed a pause in hostilities since late July.
Swiss Life and Partners Group are scheduled to release half-year results on Tuesday, with the London market closed for a public holiday limiting regional trading activity. The SMI’s defensive tilt has shielded it from sharper declines seen in riskier European peers such as the DAX.
UBS also adjusted ratings for several Swiss stocks: Barry Callebaut’s target was raised to CHF 1,180 from CHF 1,100 with a neutral rating; Kudelski’s target cut to CHF 1.05 from CHF 1.37, maintaining a hold rating; Orior’s target lowered to CHF 16.60 from CHF 19.00, with a hold rating; SoftwareOne’s fair value set at CHF 14.00 with a neutral rating.
