Swiss Market Index Opens Week in Red; Sandoz Gains
Swiss equities welcomed the new trading week on a somber note, with the Swiss Market Index down 0.61% on Monday's close, as the fragile 60-day US-Iran ceasefire agreement expires amid stalled negotiations.President Donald Trump also threatened to bomb Oman, which has been in talks with Iran over the reopening of the Strait of Hormuz, if it "gets in the way," CNBC and other media outlets reported.Back home, private-sector businesses in Switzerland expect to see an average nominal wage growth of 1.2% in 2027, 1.3% lower year over year, according to a July 2026 survey by the KOF Swiss Economic Institute. Should the KOF's latest forecast of a 0.5% rise in inflation over the next 12 months materialize, companies anticipate the nominal 1.2% wage growth to result in a "respectable" real increase of 0.7% by historical standards."The decline in wage expectations is likely to reflect two main developments. On the one hand, the situation on the Swiss labour market has been steadily deteriorating since 2023: seasonally adjusted unemployment rose slightly, and the shortage of skilled workers has eased further. In 2025, employment grew only marginally," the KOF said. "On the other hand, consumer price inflation fell again last year and was at times close to zero. Although inflation has since risen slightly again due to the war in Iran, there is nevertheless less need this year to adjust wages in line with past inflation."In corporate news, Hiag Immobilien (HIAG.SW) booked 85 million francs in net income for the first half, higher than the year-ago 44.6 million francs, while total operating income surged to 158.6 million francs from 75 million francs. For full-year 2026, the Swiss real estate company expressed confidence in achieving another "outstanding" result following record figures a year before. The stock closed the session 1.88% lower.Sandoz Group (SDZ.SW) signed an expanded collaboration agreement with biopharmaceutical company Shanghai Henlius Biotech covering up to 10 biosimilars, with the milestone-based deal having a total consideration of up to $322 million. The Swiss pharmaceutical major noted that the strategic partnership will bring the number of assets in its biosimilar pipeline to 39, potentially increasing to up to 46."We see the agreement with Henlius as a positive step to further expanding the biosimilar pipeline. The agreement includes biosimilars of Erbitux (cetuximab), Benlysta (belimumab) and Repatha (evolocumab), which cover near-term LoEs with limited visible biosimilar competition. This agreement with Henlius in combination with its agreement in March with Samsung demonstrates Sandoz's leading position as a commercialisation partner in biosimilars," according to analysts at RBC Capital Markets. Sandoz's shares gained 2.60% at closing.
