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Swiss Market Index Blinks Green; DKSH Shares Gain

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Swiss stocks kicked off the new trading week in the green, with the Swiss Market Index up 0.66% on Monday's close, as investors prepare for a busy week of earnings releases, economic data prints and monetary policy decisions from key economies.

DKSH (DKSH.SW) is bolstering its Healthcare Own Brands business by agreeing to purchase the rights for oral contraceptive brand Meliane from German life sciences company Bayer, with the transaction anticipated to complete in the third quarter. The Swiss market expansion services provider also entered into an exclusive distribution deal with home and personal care industry-focused specialty ingredients manufacturer Galaxy Surfactants, covering 16 key European markets. DKSH's shares gained 1.99% at closing.

Meanwhile, Deutsche Bank Research increased its price target for Galderma Group (GALD.SW) to 195 francs from 190 francs, with a buy rating on the stock, amid upbeat expectations for the Swiss dermatology company's growth over the medium term. The stock ended the trading session 0.03% lower.

"We update following Galderma's ill-received beat and raise with Q2 results, with investors perhaps disappointed at the deferral of an obvious anticipated H2 catalyst (i.e. a CMD, now coming in Q1) and slightly mixed H2 outlook commentary suggesting a further guide raise is unlikely," the research firm said in a note. "Nonetheless, we continue to regard the growth story as solid and operational execution on it as sufficiently reassuring to justify the current 45x FY26 P/E and expect attention to soon turn to potential for the Q1 CMD to underpin sustained strong mid-term growth expectations in due course."

Switzerland's economic news calendar was empty for the day, while the rest of the week will see the release of the Swiss KOF Economic Barometer and the UBS & CFA Society Switzerland's economic sentiment index for July, as well as the country's June retail sales figures. Market watchers are also awaiting the rate decisions of the US Federal Reserve and the Bank of England.

Speaking of rate decisions, people familiar with the thinking inside the Swiss National Bank (SNBN.SW) told Bloomberg News that the central bank is poised to leave its key interest rate unchanged at 0% until the end of 2027, mainly due to current inflation forecasts.

On the geopolitical front, the US halted its air strikes on Iran over the weekend after 13 consecutive nights of renewed bombing, according to multiple news outlets, with the Iranian government saying it is not looking to resume peace talks after US officials were quoted as saying Iran was "begging for a deal."

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