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Swiss Equities Conclusion: Easier – China unsettles investors | 07/27/21

Zurich (awp) – The Swiss stock market continued its consolidation on Tuesday. The continued sell-off on the Chinese stock exchanges and the passivity of many investors before the meeting of the US Federal Reserve’s Open Market Committee had a negative impact. Markets worried about developments in China, said a trader.

Investors fear increasing government regulation. After the technology branch, the tour had taken on private educational institutions at the weekend and thus made investors aware of the risk of investing in the “Middle Kingdom”. On Wednesday, the Fed is likely to pay particular attention to statements on inflation. Investors are particularly interested in clues as to when the central bank will scale back its bond-buying program.

The SMI closed 0.24 percent lower at 12,021.09 points. The SLI, which contains the 30 most important stocks, lost 0.56 percent to 1948.86 and the comprehensive SPI 0.31 percent to 15,457.44 points. In the case of blue chips, the losers dominated roughly in a ratio of three to one.

Logitech (-9.9%) were hit by massive profit taking. The manufacturer of computer accessories had again presented significantly better figures than expected – but the cautious outlook in the judgment of the dealers was not well received. The levies have now grown into double digits after the tech stocks on Wall Street started trading much weaker.

AMS was also one of the weakest blue chips (-2.7%). According to traders, the stock is one of the most heavily short-sold stocks on the Swiss stock exchange. Market participants may be betting that the sensor manufacturer could disappoint with the quarterly report on Friday. Only Temenos (+ 0.2%) from the tech sector closed somewhat more firmly.

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The papers of the personnel service provider Adecco also posted significant discounts (-4.1%). Dealers referred to the result of rival Randstad, which exceeded market expectations overall, but disappointed in terms of sales in the important US market. This would draw conclusions about Adecco’s numbers.

But even with positive impulses, investors do not take hold. Shares in two luxury goods makers Richemont (-2.2%) and Swatch (-2.4%) both plunged. The world market leader LVMH had published good results the evening before. According to the recently published interim reports, both papers had already risen sharply.

Financial stocks were also mostly weaker. Credit Suisse lost 0.6 percent and UBS 0.1 percent – both papers had been in high demand the day before. The development in China may dampen the economy, said investment strategists. With Julius Baer (-2.1%) it went even further down.

The defensive heavyweights meanwhile prevented worse in the SMI. While Roche closed unchanged, Novartis lost a relatively small 0.3 percent. The world’s largest food company Nestlé (+ 0.2%) will show its semi-annual report on Thursday. Experts expect strong growth and possibly higher guidance than before.

The shares of Givaudan (+ 1.1%), Clariant (+ 0.9%), Schindler (+ 0.8%) and Swisscom (+ 0.6%) recorded higher prices.

In the broad market, Obseva caught the eye with a plus of 20.7 percent. The biotechnology company has signed a license agreement with the US company Organon to develop and commercialize a compound and is entitled to milestone and license fees of up to $ 500 million. “Quite a lot of early praise,” said a trader.

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The stocks of the chocolate manufacturer Lindt & Sprüngli (+ 3.1%) rose according to the figures, as did those of the packaging group SIG Combibloc (+ 0.8%) and Bank Vontobel (+ 0.9%).

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