The Swiss equity market advanced on Wednesday, with the SMI up 0.4% at 14,589.56 points, as gains in Amrize, Holcim and Givaudan offset declines in Kühne+Nagel and Lonza. The broader SPI rose 0.4% to 20,500, while the SMIM slipped 0.1% to 3,169.97.
Amrize led the SMI’s advance, adding 1.9%, followed by Holcim at 1.6% and Givaudan at 1.3%. Richemont also gained 1.3%, while Kühne+Nagel fell 0.8% and Lonza dropped 0.5%. Among mid-caps, Gurit surged 20%, Stadler Rail climbed 14.3% and SoftwareOne jumped 13% following earnings releases. Addex Therapeutics rose 14.7% after announcing a $3 million ATM financing agreement.
SAP shares fell 4.5% in early trading after UBS raised its price target to €201 from €164 but downgraded the stock to Neutral, citing fragile investor sentiment. Analyst Michael Briest noted SAP’s core enterprise software architecture remains intact, but slow integration of generative AI is limiting monetization and increasing the risk of customer defections to alternative AI solutions. UBS also expects a slowdown in the Current Cloud Backlog—contractually secured cloud revenue—in the second half of the year.
UBS also adjusted ratings and price targets for several Swiss stocks. Kardex’s target was raised to CHF 350 from CHF 346 with a Neutral rating, while Medartis was upgraded to Outperform by ZKB. Tecan’s target was cut to CHF 192 with a Neutral rating by Oddo BHF, down from Outperform.
Positive momentum from U.S. equities, supported by lower oil prices and falling bond yields, contributed to the Swiss market’s gains. Investors also monitored geopolitical developments, including renewed talks between Iran and Oman regarding Strait of Hormuz regulations. Focus later shifted to Nvidia’s quarterly results, with whisper estimates projecting more than a doubling of revenue—levels that could disappoint even if met.
Ahead of Nvidia’s report, U.S. economic data, particularly the July PCE price index—the Fed’s preferred inflation gauge—was in focus. Market pricing implied a 40% chance of a September rate hike, with further clarity expected from Fed Chair Kevin Warsh at the Jackson Hole symposium. ECB President Schnabel reiterated in a Bloomberg interview that rates may need to rise further due to persistent inflation, though the euro showed little immediate reaction.
The Swiss franc traded mixed against major currencies. The EUR/CHF pair held steady near 0.9370, while USD/CHF dipped to 0.8033 from 0.8020. The euro was little changed versus the dollar at 1.1664. Gold futures edged 0.1% higher to $4,700.70 per ounce, after the spot price eased 0.3% to $4,642.74 amid profit-taking ahead of the U.S. inflation data.
