Swiss Market Ends Notably Higher

(RTTNews) - The Switzerland market ended notably higher on Wednesday, with investors picking up stocks, shrugging off a government report that said the nation's economy will expand significantly below average in both 2023 and 2024.

The benchmark SMI ended with a gain of 85.41 points or 0.77% at 11,154.11.

Givaudan, up 4.73%, was the top gainer in the SMI index. Lonza Group rallied nearly 2.5% and Geberit surged 2.03%.

Holcim, Kuehne & Nagel, Sika and UBS Group advanced 1.4 to 1.8%. Nestle, Sonova, Novartis and Alcon also ended notably higher.

Richemont ended 1.83% down, while Roche Holding and Logitech posted modest losses.

In the Mid Price Index, Straumann Holding, Meyer Burger Tech, AMS, Tecan Group and Clariant advanced 2.5 to 3.1%.

Bachem Holding, Flughafen Zurich, Adecco, SGS, Belimo Holding, Lindt & Spruengli, Ems Chemie Holding, Julius Baer and Temenos Group also posted strong gains.

Baloise Holding dropped more than 6%, and Helvetia ended lower by about 3.1%.

In its latest quarterly report, the State Secretariat for Economic Affairs, Or SECO, said the economy will log weak growth in the second half of the year.

However, the agency upgraded the nation's 2023 growth forecast to 1.3% from 1.1%, citing strong growth in the first quarter.

In 2024, recovery in global demand will support Swiss exports but consumer demand would probably lose some momentum, the SECO said. Growth outlook for 2024 was downgraded to 1.2 percent from 1.5 percent.

Inflation forecast for 2023 was lowered to 2.2% from 2.3%. By contrast, inflation outlook for the next year was lifted to 1.9% from 1.5%. The unemployment rate is projected to average 2% this year and to reach 2.3% in 2024.