The Swiss equities market advanced on Wednesday, outperforming peers in Europe as the SMI climbed 0.5% to 14,387 points. Trading volume reached 19.31 million shares, up from 16.56 million the prior session.
Pharmaceutical heavyweights Roche and Novartis led gains among SMI components, rising 1.6% and 1.1% respectively. Analysts cited optimism surrounding Moderna and Merck & Co’s melanoma vaccine trial as a key driver, alongside broader defensive positioning in an environment of rising yields. Ten SMI constituents advanced, nine declined, and Swisscom remained unchanged.
Geberit led SMI advancers with a 7.4% gain after reporting strong half-year results. The sanitary systems group’s shares outperformed the broader index, while Lonza followed with a 2.4% rise, supported by Moderna’s trial success according to traders.
Insurance stocks lagged, with Swiss Re, Zurich Insurance and Swiss Life each declining between 0.9% and 1.4%. Market participants attributed the underperformance to concerns over bond-market valuations amid falling bond prices, compounded by impacts from recent heatwaves. Across Europe, insurers faced selling pressure.
Straumann shares fell 2.5% despite posting solid second-quarter figures, as investors focused on the pending departure of CEO Guillaume Daniellot, who will step down later this year after seven years in the role. Bernstein analysts noted Daniellot’s popularity among investors, adding that the transition introduced an element of uncertainty.
Emmi’s stock dropped 4.7% despite a 2.2% rise in first-half revenue and a 4.8% increase in operating profit, as the market response failed to reflect the positive figures. Burckhardt Compression declined 3.4% after announcing plans to cut up to 220 jobs to adjust cost structures amid weaker market conditions and anticipated lower capacity utilization.
