The Swiss equity market extended gains on Wednesday, with the SMI up 0.4% at 14,589.56 points by mid-morning, as 15 of the 20 index components advanced. The broader SPI rose 0.4% to 20,511, while the SMIM mid-cap gauge slipped 0.1% to 3,169.97.
Construction and materials led sector gains with a 1.6% rise, followed by consumer cyclicals at 1.3% and financials at 0.5%. Health care fell 0.2% and real estate declined 0.02%, lagging the market. Positive momentum stemmed from firmer U.S. equity futures overnight, supported by lower oil prices and falling bond yields, alongside renewed talks between Iran and Oman over Hormuz Strait shipping lanes.
SAP shares dropped 4.5% after UBS downgraded the software giant to Neutral from Buy while raising its price target to €201 from €164, citing valuation as reasonable but investor sentiment as fragile. Analyst Michael Briest noted slow integration of generative AI into SAP’s core enterprise architecture, limiting monetization potential and increasing the risk of customer defections to alternative AI solutions. Briest also projected a likely slowdown in the Current Cloud Backlog—contractually secured cloud revenue—in the second half of the year.
Among the top gainers, construction firm Amrize led with a 1.9% advance, followed by Holcim at 1.6% and Givaudan at 1.3%. Richemont also rose 1.3%, while logistics group Kühne+Nagel fell 0.8% and Lonza declined 0.5%. Tech-related names showed mixed performance ahead of Nvidia’s after-hours earnings release, with Logitech up 0.5% and VAT down 0.5%.
Gurit surged 20% after reporting results, Stadler Rail climbed 14.3% on strong revenue and order growth despite missing earnings estimates, and SoftwareOne gained 13% following better-than-expected revenue and profitability. Addex Therapeutics rose 14.7% following a $3 million ATM financing agreement.
Separately, UBS adjusted ratings and price targets for several Swiss stocks: Kardex was raised to CHF 350 from CHF 346 with a Neutral rating, while Tecan was downgraded to Neutral from Outperform with a target of CHF 192. Medartis was upgraded to Overweight from Marketweight by ZKB.
In currency markets, the Swiss franc was broadly steady against major peers. EUR/CHF traded at 0.9370, USD/CHF at 0.8033, and EUR/USD at 1.1664. Market focus shifted to U.S. data, particularly the July PCE price index—the Fed’s preferred inflation gauge—due later in the session. Fed policymakers, including Governor Kevin Warsh, are scheduled to speak at the Jackson Hole symposium starting Thursday, where further clues on interest-rate policy are expected.
Gold prices eased 0.3% to $4,642.74 per ounce after hitting a three-month high on Tuesday, as investors awaited the U.S. inflation report for signals on the Fed’s next policy move.
