Swiss Market Ends On Firm Note Despite Weak Data

The Switzerland stock market, back to business after a long weekend, ended on a firm note on Tuesday, as investors picked up shares amid hopes the reopening of businesses will help boost economic growth.

However, gains were somewhat limited due to data showing Switzerland's retail sales to have declined at a faster rate in April, amid the Covid-19 outbreak.

The benchmark SMI ended up 119.96 points, or 1.22%, at 9,951.45. after moving between 9,872.96 and 9,979.18. The market remained shut yesterday for Whit Monday holiday.

Swiss Re gained nearly 6.5%. Credit Suisse gained about 5.2%. The bank sait will not have a significant hit from its exposure to an ailing oil and gas sector battered by the COVID-19 pandemic, Chairman Urs Rohner reportedly told SRF. He also said the bank is not trying to delay a FINMA probe in the spying scandal involving a former executive by challenging its choice of an auditor in court.

Richemont and Swiss Life Holding also moved up more than 5%.

Sika gained 4.6% and Zurich Insurance Group advanced 4%. ABB, UBS Group, LafargeHolcim, SGS and Adecco climbed up 2.25 to 3.7%. Swatch Group moved up 1.2%.

Nestle ended marginally up. Nestle said that it would appeal a Dutch court's ruling that prohibits the company from selling its plant-based burgers in Europe under the "Incredible Burger" name after a challenge from U.S.-based Impossible Foods.

Alcon declined 1.7%. Roche Holding ended flat. Roche announced that the USFDA has approved the immunotherapy Tecentriq in combination with its drug Avastin for the most common kind of liver cancer.

In the midcap section, Dufry soared nearly 13%. Swiss Prime Site, AMS, Julius Baer, Baloise Holding and Helvetia gained 5 to 6%.

Clariant, Kuehne & Nagel, Flughafen Zurich, Straumann Holding, Bucher Industries, Lindt & Sp Ps and Lindt & Spruengli and Dorma Kaba Holding ended higher by 3 to 4.7%.

Logitech and Sonova ended lower by 2% and 1.4%, respectively.

According to the data released by the Federal Statistical Office, retail sales declined a working-day adjusted 19.9% year-on-year in April, following a 5.8% fall in March.

All the sectors were affected to varying degrees due to the Covid-19 pandemic, the agency said.

Sales of other goods that includes clothing, chemists, watches and jewelry, decreased 55.5%. Sales of non-food sector dropped 40.2%.

Other household equipment, textiles, DIY and furniture segment sales logged the biggest fall in April, tumbling nearly 45%. Meanwhile, sales of food, beverages and tobacco rose 3.5%.

Sales through market stalls, mail order houses or internet increased and those of "information and communication equipment" grew 12.1% in April.

On a monthly basis, seasonally adjusted retail sales decreased 14.7% in April, following a 6.7% drop in the previous month. In nominal terms, retail sales fell 20.6% annually in April and fell 14.8% from a month ago.

The procure.ch Manufacturing PMI in Switzerland increased to 42.1 in May of 2020 from 40.7 in April, recording the lowest score since May 2009.