The blue-chip Swiss Market Index concluded Tuesday's trading 0.54% in the green as investors took stock of the US' less-severe-than-expected "economic D-Day" measures against Iran.
"Starting with [Scott] Bessent's announcements on Iran, the US Treasury Secretary threatened secondary sanctions against any country enabling Iran's economy, calling the move 'economic asphyxiation' of Iran's regime. He noted that [President Donald] Trump is calling world leaders with 'specific requests to cease their interactions with the regime'. However, there were no concrete new steps other than sanctioning 60 Iran-linked entities and individuals, with Bessent saying 'we are giving everyone the opportunity to remedy bad behavior,'" analysts at Deutsche Bank Research said.
Back home, Switzerland's Federal Statistical Office said its initial estimates for 2025 showed that the country's gross domestic product expanded by 1.6% at the previous year's prices, compared with the upwardly revised GDP growth of 1.5% in 2024.
Over to corporates, SMG Swiss Marketplace Group (SMG.SW) gained 8.15% at closing as profit after tax doubled year over year to 56.4 million francs in the first half, while group revenue jumped 11.3% to 179.8 million francs on the back of double-digit growth at all core business units. The online marketplace and digital company also announced several leadership changes, including naming Alberto Sanz de Lama as its new chief executive officer, as part of a structured succession process.
Berenberg lowered its rating on DKSH (DKSH.SW) to hold from buy and cut its price target, noting that the Swiss market expansion services provider's performance materials segment has "limited" visibility on volumes, although it continues to be the company's key profit driver. The stock was 2.25% in the red.
"DKSH's shares have appreciated by c16% ytd. With the stock now trading broadly in line with our revised CHF68 price target (down from CHF75), we believe the risk-reward profile is no longer compelling and we move to the sidelines, downgrading DKSH to Hold," according to the research firm. "While we continue to view DKSH as a quality company with robust cash generation and shareholder returns, the lack of positive consensus earnings revisions leaves further share price appreciation reliant on uncertain capital deployment."