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Swiss Market Index Closes Higher; SoftwareOne Shares Jump

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Swiss stocks were in positive territory on Tuesday, with the Swiss Market Index up 0.14% at the end of the trading day, amid a slew of economic data and corporate earnings releases that hit the market.

Switzerland's producer and import price index rose 0.8% month over month in April and fell 2% on a yearly basis to 100.5 points, according to data from the Federal Statistical Office.

In the euro area, the ZEW Indicator of Economic Sentiment for the bloc improved to -9.1 points in May from -20.4 points in April. Across the pond, the annual inflation rate in the US climbed to 3.8% in April from 3.3% a month earlier, while the annual core inflation rate rose to 2.8% from 2.6% previously.

On the corporate front, SoftwareOne (SWON.SW) shares closed the session 9.30% higher as it booked a year-over-year surge in first-quarter revenue to 387.7 million francs from 231.6 million francs, with the integration of acquired company Crayon progressing as planned. Looking ahead, the Swiss software and cloud technology group raised its revenue growth guidance for 2026 to the mid- to high-single digits from the mid-single digits, at constant currency and on a combined like-for-like basis.

Laboratory instruments company Tecan Group (TECN.SW) and real estate group PSP Swiss Property (PSPN.SW) also published financial updates.

Meanwhile, Deutsche Bank Research reduced its price target for Alcon (ALC.SW) to 70 francs from 77 francs, with a buy rating on the stock, noting that the investment case for the Swiss eye care products group is still intact after "solid" first-quarter results. The stock was 2.89% in the green at closing.

"Although the top line did not meet buy-side expectations, the performance should be sufficient to deliver on full-year guidance ... The company also initiated a new $1.5 billion share buyback program, and its many recent product launches are ramping up well, set to contribute more meaningfully in the coming quarters. Consequently, we view the harsh share price reaction following the results as overdone," the research firm said. "While it may take some time for market sentiment to settle, we expect the stock to recover, and our reduced target price still offers 40% upside potential."

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