Swiss Market Ends Modestly Lower

(RTTNews) - Save for a few minutes early on in the session, the Switzerland market languished in negative territory on Thursday as investors remained reluctant to make significant moves, digesting the central bank's rate decision, and closely following geopolitical news.

The benchmark SMI ended with a loss of 49.41 points or 0.36% at 13,765.83 after scaling a high of 13,836.55 and a low of 13,743.43 intraday.

Drugmakers Roche (down 2.68%) and Novartis (down 2.45%), were the major losers in the benchmark index. Partners Group drifted down nearly 2%, while Sandoz Group ended 1.6% down.

Kuehne + Nagel and Alcon both closed lower by about 1.25%. Sonova, Zurich Insurance Group, Swiss Life Holding and Helvetia Baloise Holding ended modestly lower.

Sika moved up nearly 3%. UBS Group gained 2.65% and Straumann Holding ended 2.61% up.

SGS, ABB and Richemont gained 1.7%-1.9%. Logitech International, Julius Baer, Geberit, Givaudan and VAT Group posted moderate gains.

The Swiss National Bank (SNB) left its policy rate unchanged at 0%, despite rising inflation. The move was in line with expectations.

The SNB had lowered the key rate by 175 basis points since March 2024. The bank exited its negative rate in 2022 after holding it for over seven years.

"If necessary, the SNB has an increased willingness to intervene in the foreign exchange market," the bank said.

"The SNB thereby counters a rapid and excessive appreciation of the Swiss franc, which would jeopardise price stability in Switzerland," the bank added.

Citing the impact of higher energy prices, the bank raised its inflation forecast for 2026 to 0.6% from 0.5%. Inflation is expected to remain at 0.6% next year and to rise marginally to 0.7% in 2028.

The central bank maintained its growth outlook for both 2026 and 2027. For this year, growth is projected at around 1% and about 1.5% next year.

Data from the Federal Customs Administration showed Switzerland's trade surplus rose to CHF 5.64 billion in May from CHF 3.28 billion in April.

In nominal terms, exports expanded sharply by 13.4% monthly in May, while imports were only 3.4% higher. Real exports climbed 5%, and imports logged a slower growth of 0.2%, the data showed.