Swiss stock market hits a new record

The SMI briefly climbed to just under 14,732 points on Thursday morning, setting a new all-time high for Switzerland’s blue-chip index. The peak topped the previous record, set in mid-August, by just over 50 points. Gains among the index’s largest companies helped drive the advance, with pharmaceutical groups Novartis and Roche and food giant Nestlé all rising during the morning.

The record arrived as investors shifted toward companies they consider more able to withstand economic downturns. That change in sentiment has benefited the Swiss market, where pharmaceuticals and food companies carry significant weight in the SMI. Their performance can therefore move the benchmark substantially. The advance was not universal: building materials group Amrize dropped sharply after reporting disappointing quarterly figures and cutting its full-year forecast. The contrast between the index’s record and Amrize’s steep fall shows how strongly the day’s market direction depended on its largest constituents.

Novartis shares rose 2% at around 9:50 am, leading the gains among the major companies cited in Thursday’s market update. Nestlé advanced 1% and Roche gained 0.5%, giving the SMI support from three of its heavyweight names. Their moves helped the benchmark establish a record even as one prominent constituent moved sharply in the opposite direction.

Amrize shares fell just over 5% after the building materials group posted disappointing quarterly figures and lowered its full-year forecast. The drop made it the clear laggard among the four companies highlighted in the morning’s trading. The SMI’s performance reflects the influence of its largest constituents: when heavyweight pharmaceutical and food companies rise together, their gains can lift the index despite weakness elsewhere. Thursday’s trading offered a sharp example, with the strength of Novartis, Nestlé and Roche outweighing the pressure from Amrize’s sell-off.

Investors have been shifting money out of technology shares and into companies seen as more resilient during economic downturns, traders said. The rotation has favoured the Swiss market because pharmaceuticals and food companies make up a substantial part of the SMI. Roche, Novartis and Nestlé have recently driven the benchmark higher, supported by demand for products that tends to hold up in difficult economic conditions.

The move also reflects concern about inflation and interest rates. High oil and energy prices are adding to inflation pressure, which can leave central banks facing calls to keep rates high or raise them further. Higher rates weigh particularly on technology shares, many of which are valued on expectations of future profits. When interest rates rise, those expected profits are worth less in today’s terms. That pressure has helped redirect investor attention toward the more defensive companies that feature prominently in Switzerland’s leading index.