Swiss SMI Slips as Growth Concerns and Rate Hikes Weigh on Sentiment

The Swiss Market Index (SMI) concluded Friday's session with a modest decline, closing at 11,096.12. The benchmark index shed 38.62 points, representing a 0.35% loss, after fluctuating between a daily low of 11,075.97 and a high of 11,178.03. Market sentiment remained bearish throughout the session, driven primarily by macroeconomic headwinds. Investors expressed growing concern regarding the trajectory of interest rates and the potential for a broader economic slowdown, which pressured several high-weight components of the index. Lonza Group led the decline with a significant drop of 5.78%, while Sika and Logitech fell by approximately 4% and 3.3%, respectively. The banking sector also faced pressure, with Credit Suisse sliding 1.9% and UBS Group ending nearly 1% lower. Other weak performers included Roche Holding, ABB, and Swisscom. In the Mid Price Index, Schindler Holding plummeted 4.4% after the company lowered its 2022 revenue guidance. The elevator and escalator manufacturer attributed the revision to contraction in the Chinese market and ongoing COVID-related restrictions. Similarly, Zur Rose, SIG Combibloc, Ems Chemie Holdings, and Clariant all ended lower, with losses ranging between 1.3% and 2%. Despite the overall downturn, some sectors showed resilience. Nestle advanced 1.06% and Partners Group rose 1.53%, while Zurich Insurance Group, Swiss Life Holding, and SGS also posted moderate gains.