Swiss SMI Rises as Rate Cut Expectations Fuel Buying

The Swiss Market Index (SMI) ended Friday's session on a strong note, gaining 130.96 points, or 1.1%, to close at 12,000.86. The rally was characterized by sustained buying support as investors positioned themselves for anticipated interest rate cuts from several global central banks. The broader market sentiment was bolstered by a mix of monetary policy expectations and domestic economic resilience. The rally saw significant participation from the healthcare and insurance sectors, reflecting a risk-on appetite among traders during the session. Top performers included Swiss Re, which climbed 2.27%, and Novartis, which rose 2.13%. Other notable gains were seen in Kuehne & Nagel (+1.71%), as well as UBS Group, Nestle, and Swisscom, all of which advanced between 1.35% and 1.6%. Roche Holdings and Sandoz Group also saw gains between 1% and 1.2%. Despite the overall gain, some industrial and tech names struggled. Meyer Burger Tech saw a sharp decline of nearly 8%, while Belimo Holding dropped 2.64%. Sika and Holcim also closed lower, falling between 1% and 1.27%. Supporting the market's buoyancy, the Federal Statistical Office reported that Swiss retail sales grew 2.7% year-on-year in April. This marks a recovery from the 0.2% contraction seen in March. On a monthly basis, sales rose 0.2% in April, reversing a 0.3% decline in the previous month.