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Positive Economic Growth Lifts Swiss Stocks; Sonova Gains

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Swiss stocks welcomed the new trading week in the green, with the Swiss Market Index closing 0.16% higher on Monday, as investors get ready for a busy week of economic data releases across key global markets.

Switzerland's seasonally and sport event-adjusted gross domestic product expanded by 0.5% in the first quarter, following a 0.2% uptick in the prior three-month period, supported by growth in the industrial and services sectors, provisional government data showed.

On the labor market front, the country recorded a 0.2% annual growth in the number of employed people in the first quarter, while the unemployment rate rose to 5.2% from 4.7%, according to the latest Swiss Labour Force Survey.

Over to corporates, Sonova (SOON.SW) booked sales of 3.61 billion francs in fiscal 2026 and income after taxes of 546 million francs, up 5.9% and 13.9%, respectively, in local currencies. Looking ahead to fiscal 2027, Sonova forecasts consolidated sales growth of between 5% and 8% at constant exchange rates. The Swiss hearing care company's stock gained 7.87% at closing.

"Strong growth in our Wholesale business, accelerating to 10.9% in local currencies in the second half, reflects our technology and innovation leadership and consistent execution," Chief Executive Officer Eric Bernard said. "With the intended divestment of the Consumer Hearing business, the transition to a regionalized operating model, and a strong pipeline of upcoming product launches across hearing aids and cochlear implants, we are executing our strategy as planned."

PolyPeptide Group (PPGN.SW) slipped 0.80% amid chatter that it selected private equity firms EQT and IDG Capital to move forward to its next bidding round, Bloomberg News reported. The sources added that investment company Altaris is also looking at a potential offer for the Swiss pharmaceutical-focused contract development and manufacturing organization.

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