The Swiss Market Index (SMI) slipped 0.24% to 14,369.89 points by 11:26 a.m. Zurich time, trading within a 40-point range since the open as investors navigated a cautious start to the week. The broader Swiss Performance Index (SPI) fell 0.18% to 20,234.60, while the SMIM mid-cap gauge declined 0.44% to 3,120.37. Defensive positioning supported the SMI relative to peers such as Germany’s DAX, which posted sharper losses.
The subdued trading day reflected limited corporate news and the closure of London’s financial center for a holiday. Swiss Life and Partners Group are set to release half-year results on Tuesday, potentially providing fresh impetus. Analysts noted that the SMI’s defensive tilt and low volatility—none of the 20 blue chips moved more than 1%—underscored the index’s resilience despite broader headwinds.
Geopolitical risks and shifting interest-rate expectations weighed on sentiment. U.S. Federal Reserve Chair Kevin Warsh’s remarks last week heightened expectations for a September rate hike, while renewed military strikes between the U.S. and Iran pushed Brent crude oil prices up 3.3% to $90.98 per barrel. Analysts at DBS projected prices would remain range-bound between $85 and $95 amid delays in negotiations over the Strait of Hormuz, a critical oil transit route.
Among SMI components, Kühne+Nagel led advancers with a 0.7% gain, extending a recent upward trend that analysts attributed in part to Middle East tensions. Swisscom and defensive insurers also posted modest gains. On the downside, Holcim, Lonza, and ABB declined 0.9%, 0.9%, and 0.6%, respectively. UBS shares fell 0.2% ahead of a Swiss Senate commission meeting on proposed regulatory changes, with reports suggesting a dilution of the government’s initial proposals. UBS’s stock had reached a new 2024 high on Friday.
Accelleron slumped 4.0% after a volatile recent performance, while Gurit surged 4.2% following analyst commentary. UBS raised Gurit’s price target to CHF 49 from CHF 43, maintaining a Buy rating despite a slower growth outlook for its Wind Materials segment. The segment, accounting for 50-60% of revenue, is expected to face headwinds in 2027 due to the loss of one-off effects, though long-term contracts in wind and defense markets were cited as stabilizing factors. UBS also upgraded Barry Callebaut’s target to CHF 1,180 from CHF 1,100, keeping a Neutral rating. Research Partners cut Kudelski’s target to CHF 1.05 from CHF 1.37, while Octavian lowered Orior’s target to CHF 16.60, both maintaining Hold ratings.
Airport operator Flughafen Zürich rebounded 0.7% after Friday’s 7.7% plunge on earnings, with Vontobel defending the move and reaffirming its Buy recommendation. Chip-equipment supplier Soitec rose 4.0% in Paris to €112.30 after CEO Laurent Remont said customers were securing long-term contracts for silicon wafers, including fixed prices and upfront payments, citing strong demand. Richemont gained 0.5% on positive Chinese economic data.
The SMI’s modest decline followed a week of heightened volatility, with traders citing lingering uncertainty from the Federal Reserve’s Jackson Hole symposium and the Jackson Hole Economic Symposium. The index was up 0.05% to 14,407.26 points at 09:30 a.m., while the SMIM fell 0.28% to 3,325.22 and the SPI dipped 0.05% to 20,259.51.
