Switzerland's SMI fell about 0.1% to 13,920.90 points at midday on Friday, remaining in negative territory but on track to post a weekly gain after three straight losing weeks. The broader Mid-Cap SMIM rose 0.5% to 3,080.15, while the wide SPI dipped roughly 0.1% to 19,683.62.
The day's biggest headline came from Nestlé, whose shares dropped 2.1% as Russia placed some of the food giant's subsidiaries under temporary foreign administration. Ownership remains formally with Nestlé, but the company has lost operational control. Analysts estimate Russia contributes roughly 1 to 2 percent of group revenue, while the value of Russian assets has been estimated at approximately 1.75 billion Swiss francs, which could face write-downs in a worst-case scenario.
Pharmaceuticals provided support: Novartis and Roche each gained about 0.4 percent, and ABB rose 1.7 percent.
Meanwhile, Swisscom fell 2.9 percent and Kühne+Nagel dropped 1.8 percent. Both are set to exit the SMI next Monday when Galderma (+2.4%) and Sandoz (+2.7%) are added, topping the SLI ranking.
Sandoz had its own positive catalyst, announcing that Canada approved a generic version of the diabetes drug semaglutide and that a partnership for an emicizumab biosimilar — the first hemophilia treatment in its pipeline — has been secured.
On the broader market, Leonteq fell 0.2 percent even as controlling shareholder Rainer-Marc Frey increased his stake to nearly 30 percent, absorbing the remaining shares of Raiffeisen bank, which is exiting as a shareholder.
VAT rose 2.3 percent after Vontobel raised its rating to "Buy," calling the recent correction a buying opportunity. Amrize slipped 0.9 percent after Jefferies cut its price target to 30.60 Swiss francs, below the stock's recent level around 31.82 francs.
AMS Osram advanced 4.1 percent on bullish commentary from Kepler Cheuvreux, which noted growing AI adoption in the automotive and industrial sectors. Rieter, however, continued its slide, falling another 4.3 percent after UBS downgraded it to "Sell" on Thursday, sending shares tumbling 16 percent.
The "Hexensabbat" — third-Friday expiration of options and futures on equity indices and individual stocks — was also expected to amplify intraday volatility.
In commodities, gold rose to as much as $4,399 per ounce, up 1.4 percent, extending Thursday's near-2 percent advance. Goldman Sachs sees gold reaching $5,400 by the end of 2027, cautioning only that tighter monetary policy may slow the rally rather than stop it outright. Meanwhile, Brent crude fell about 1 percent to $103.73 a barrel for November delivery, marking a third consecutive session of losses.
Currency markets showed the euro at 0.9474 Swiss francs around midday (0.9463 in early European trade), while the US dollar strengthened to 0.8251 francs from 0.8242. The EUR/USD pair remained essentially unchanged at 1.1482.
