The Swiss equity benchmark SMI retreated for a second consecutive week on Friday, weighed down by losses in pharmaceutical heavyweights and Partners Group, while Brent crude held above $93 a barrel amid persistent Middle East tensions.
The SMI slipped 0.34% to 14,319.29 points, while the broader SPI declined 0.26% to 20,147.48 points. Among the 20 SMI constituents, advances and declines were evenly split, with the mid-cap SMIM index down a marginal 0.06% to 3,137.87 points. The weekly decline marks the second consecutive week of losses for the SMI, driven by rising U.S. Treasury yields and firmer oil prices. The recent eurozone PMI data, though better than expected, failed to materially lift sentiment.
Pharmaceutical stocks Roche and Novartis led the declines, falling 1.4% and 0.9% respectively, after a strong earlier performance. Alcon dropped 1.3% and Partners Group fell 1.0%, while Richemont eked out a 0.1% gain following the expansion of Switzerland’s free-trade agreement with China. Swatch rose 0.9%, supported by a modest rebound in Chinese demand.
In the broader market, Vetropack surged 5.9% after reporting first-half results that included a currency-adjusted revenue increase and the company’s first medium-term guidance under new CEO Lukas Burkhardt. Holcim gained 1.2% following its €840 million acquisition of German firm Fermacell, a deal viewed positively by analysts.
Sentiment remains mixed, with some market participants noting that the SMI’s technical outlook remains intact despite a challenging macro backdrop. UBS’s Investment Office maintained a constructive base case, citing resilient AI spending, steady corporate earnings and easing inflation pressures as potential tailwinds for equities.
Oil prices remained elevated above $90 a barrel as geopolitical risks in the Middle East showed no signs of abating. Brent crude, though slightly lower than intraday peaks, held near $93 a barrel, while U.S. President Donald Trump’s pledge to increase economic pressure on Iran added to supply concerns.
Analysts at Deutsche Bank downgraded Straumann to ‘Hold’ from ‘Buy’, contributing to the stock’s 3.2% decline.
