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Swiss Stocks End Week Upbeat; Holcim Rises

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The Swiss Market Index closed 0.50% in the green on Friday amid a quiet day of economic news locally and thin trading volumes, with the US market closed in observance of the Independence Day holiday.

Deutsche Bank Research raised its price target for Holcim (HOLN.SW) to 88 francs from 85 francs, expecting the building materials company's revenue in the second quarter to reach 4.27 billion francs. At the end of Friday's trading session, the stock was up 2.86%.

"For Q2 (H1 results on 31 July), we expect a sales increase of c.2% yoy, reflecting: organic growth of c.4%; a marginally positive scope impact (with a full quarter contribution from Cementos Pacasmayo, largely offset by the Nigeria disposal); and negative FX of around 2% (mainly in AMEA and Europe); this represents an improvement from the c.6% impact seen in Q1," the research firm wrote in a note.

Meanwhile, Givaudan (GIVN.SW) opened a new 24,000 square-meter production facility for flavor powders in Cikarang, Indonesia, in which it invested 50 million francs to bolster its manufacturing capacity. The move is also part of plans to expand the company's footprint in high-growth markets. The Swiss flavors and fragrances group edged up 0.14% at closing.

Outside Switzerland and in other news, the S&P Global Eurozone Composite PMI Output Index rose to a three-month high of 50 in June, against the previous 48.5 and flash estimate of 49.5. The seasonally adjusted final reading marks the first time the index has moved out of the contraction zone since March.

"An easing of downturn in eurozone service sector business activity during June is welcome news and, in conjunction with manufacturing growth, means the wider economy has stabilised after two months of falling output," S&P Global Market Intelligence Chief Business Economist Chris Williamson said. "A key drag on economic growth since the outbreak of the war in the Middle East has been the subduing of demand from consumers due to the energy price spike, but these inflationary pressures have shown signs of cooling markedly in June."

Looking ahead, next week's Swiss economic calendar includes the June unemployment rate and consumer sentiment index.

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