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Swiss Shares Rise After Whit Monday; Middle East Tensions in Focus

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Swiss shares started the week in the green after the Whit Monday holiday as investors digested developments in the Middle East.

The Swiss Market Index closed 0.17% higher on Tuesday, after reports that the US and Iran exchanged fire near the Strait of Hormuz, with an interim peace deal between the two sides remaining elusive.

On the corporate front, Lem Holding (LEHN.SW) shares surged 24.85% after it reported higher earnings for fiscal 2026 and reconfirmed its midterm targets, including average annual sales growth of 4% to 7% at constant exchange rates and an improvement in the EBIT margin to between 10% and 15%.

The electrical measurement systems company also announced the start of a strategic options review, saying it has "drawn the attention of certain interested parties." Lem noted that there can be no assurances that the review will result in any transaction.

Julius Baer (BAER.SW) rose 2.97% after BofA Securities upgraded its investment recommendation on the financial group to buy from neutral and reduced its price objective. BofA said a recent 7% fall in the company's stock offers an attractive entry point to investors.

"Although flows missed, we expect organic growth to strengthen towards guidance by 2028. We forecast 17% EPS CAGR in 2025-28E driven by 1) improving operating leverage and flows, and 2) share buybacks of CHF1.4bn (11% of market cap)," BofA added.

Deutsche Bank, however, lowered its forecasts for Julius Baer by a low to mid-single-digit percentage, citing lower-than-expected assets under management and a reduction in share buybacks. "While transactional activity was strong in the first four months of 2026, boosting gross margin and the cost-income ratio, net new money disappointed."

Looking ahead, the CS-CFA Society economic sentiment index for May is due on Wednesday, the latest quarterly non-farm payrolls are scheduled for Thursday, and the KOF leading indicators are due on Friday.

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