Swiss equity markets opened the week in the red, with the SMI down 1.00% at 14,251 points and later trading 1.2% lower at 14,221 points. The broader SPI fell 0.89% to 20,027 and then 1.1% to 19,982.
Pharmaceutical heavyweight Novartis led the decline, slipping 3.2% after the experimental cholesterol‑lowering drug Pelacarsen failed to demonstrate a reduction in heart‑attack and stroke risk. Analysts erased revenue forecasts for the product, which had been projected to generate $1.3‑$2.0 billion in peak sales. The setback echoed a 5% drop in Amgen shares on Friday, where a similar candidate is under study.
Roche added to the pressure, falling 1.3% (later 1.5%). Lonza and generic‑drug maker Sandoz also retreated, down 1.2% and 0.5% respectively. Sandoz is set to hold an investor day on Tuesday, where analysts expect higher medium‑term targets.
Industrial stocks showed mixed performance. ABB posted a gain of 1.1% (later 0.6%‑0.8%), while VAT rose 1.0% (later 1.1%). Their upside mirrored a rally in Asian chip equities driven by renewed AI enthusiasm. In the broader market, AMS Osram climbed 2.4%, Komax 1.6% and Inficon 1.2% (later 1.8%).
Defence‑related and insurance names also moved. Swiss Re fell 1.9% after warning of rising storm, drought and wildfire costs, though it later edged up 0.3% in pre‑market trading. Med‑tech firms Alcon, Sonova and Straumann each slipped between 1.3% and 1.5%.
Schindler, the escalator and lift maker, dropped 1.7% to CHF 256.20 (later 3.1% to CHF 252.60) after Goldman Sachs cut its rating to "Sell" and trimmed the target price to CHF 233, citing weak Chinese demand and limited upside from efficiency programmes.
The transformer group R&S declined 0.7% (later 4.1%) following the departure of CEO Eduardo Terzi, a move attributed to differing views on leadership and organisational structure. Zurich Cantonal Bank noted that while the change creates short‑term uncertainty, it could offer a clean‑slate opportunity.
Burkhalter posted a 4.4% rise (later 6.7%) after beating first‑half earnings expectations, despite missing sales forecasts. Construction‑materials supplier Arbonia surged 15% (later 12.5%‑17%) after UBS upgraded the rating to "Buy" and lifted the price target by roughly 50%, citing an attractive valuation well below historic averages and peers.
On the currency front, the Japanese yen strengthened to 154.07 per US dollar, its lowest level in seven months, as the dollar fell up to 1.4%. The move follows speculation that the Bank of Japan may adopt a more aggressive rate‑hiking stance; its policy rate was last set at 1% in June, a 31‑year high, with the next decision due on 18 September.
Commodity markets saw Brent crude rise to $97.36 a barrel, up just over 1% from the weekend.
Overall, 19 of the 20 SMI constituents posted losses, with Novartis the biggest dragger at –4.2% in pre‑market quotes. Only Swiss Re managed a modest gain of 0.3% in the same session.
