The Switzerland stock market ended on a firm note on Thursday, gaining in strength after opening modestly higher.
Encouraging exports data, and the Swiss National Bank's forecast that the economy will see a decent growth next year helped underpin sentiment.
The benchmark SMI ended with a gain of 83.58 points or 0.8% at 10,540.36, after hitting a high of 10,569.70 intraday.
Sika gained about 3.4% and Swatch Group moved up 2.5%. Lonza Group, Geberit, Richemont and Partners Group gained 1.7 to 1.85%. LafargeHolcim and Nestle moved up 1.3% and 1%, respectively.
Novartis ended 1.25% up after the company agreed to buy all of the outstanding capital stock of Cadent Therapeutics. Roche Holding shares gained about 0.25%
Alcon, UBS Group and Swisscom gained 0.7 to 1.1%.
In the Mid Price Index, Temenos Group gained more than 3%. Dufry ended nearly 3% up, while VAT Group, Ems Chemie Holding, Schindler Ps, Schindler Holding, Helvetia, Julius Baer, Adecco, Flughafen Zurich, PSP Swiss Property and Sonova gained 1.25 to 2.2%.
Shares of chipmaker AMS plunged nearly 5%.
The Swiss National Bank today retained the policy rate and interest on sight deposits at the SNB at a record low -0.75%, aiming to stabilize economic activity and price developments.
As the Swiss franc is highly valued, the central bank reiterated that it is willing to intervene more strongly in the foreign exchange market. In so doing, it takes the overall exchange rate situation into consideration.
The bank said its expansionary monetary policy provides favorable financing conditions, counters upward pressure on the Swiss franc, and contributes to an appropriate supply of credit and liquidity to the economy.
The central bank said it expects consumer prices to fall 0.7% this year and to remain flat next year. In 2022, prices are projected to climb 0.2%. In September, the bank had projected a 0.6% drop in prices for 2020 and +0.1% for 2021.
Further, the bank expects economic momentum to be weak in the fourth quarter of 2020 and in the first quarter of next year due to new restrictions imposed to control the Covid-19 pandemic. The SNB expects that GDP to shrink by around 3% this year.
The SNB forecast economic growth of 2.5% to 3% for 2021.
Data from the Federal Customs Administration showed Switzerland's exports rose by a real 4.6% month-on-month in November, increasing for the first time in three months. In October exports had fallen 0.5%.
Imports grew 4.8% monthly in November, after a 3.1% rise in the previous month.
In nominal terms, exports gained 4.8% in November and imports increased 4.2%. The trade surplus increased to CHF 3.094 billion in November from CHF 2.864 billion in the previous month.
According to the Federation of the Swiss Watch Industry, watch exports declined 3.2% year-on-year in November. In the first eleven months of the year, watch exports decreased 23.5% year-on-year.
For comments and feedback contact: editorial@rttnews.com
