Swiss Blue-chip Index Slips; Trade Surplus Reaches New Monthly Record High
The Swiss Market Index slipped into the red on Thursday, closing 0.13% lower, as investors took stock of the latest company and economic updates, alongside global geopolitical developments.Switzerland expanded its sanctions against Russia amid the latter's ongoing war in Ukraine by adopting additional measures of the European Union's 20th sanctions package. The latest package includes new measures aimed at further weakening the Russian energy and financial sectors, as well as preventing the circumvention of sanctions.On the economic front, Switzerland's trade surplus hit a new monthly record high of 8.14 billion francs in July, up from 3.83 billion francs in June, data from the Federal Office for Customs and Border Security showed. Seasonally adjusted exports jumped 13.8% in nominal terms, mainly driven by the chemicals and pharmaceuticals sector, while imports fell 4.5%.The country's watch exports, meanwhile, climbed 9.6% annually to 2.63 billion francs in July, bolstered by growth across all categories of materials, according to the Federation of the Swiss Watch Industry.In corporate news, Swiss Prime Site (SPSN.SW) delivered a profit of 192.5 million francs in the first half, up from the year-ago 164.2 million francs, while total operating income fell to 271.1 million francs from 276.3 million francs. Rental income from own properties rose 2.2% over the period to 230.6 million francs, mainly due to new leases following building modifications and renovations. The real estate company's shares were up 1.84% at closing.Berenberg lowered its price target for Huber+Suhner (HUBN.SW) to 200 francs from 250 francs, noting a muted first six months of 2026 amid "growing pains" as the electrical and optical connectivity group steps up its optical circuit switch production. At the end of the trading session, the stock shed 4.21%."Elevated costs associated with setting up production with new highly automated assembly lines in Poland pushed the Communication segment's EBIT margin into negative territory. However, we expect this effect to dissipate in H2 with the acceleration of OCS shipments since June and that the margin will comfortably recover to 14% in H2," the research firm said. "We revise down our estimates slightly, adjust our price target to CHF200 and remain Hold-rated, maintaining our view that the share price already fairly reflects the OCS opportunity."Elsewhere, US President Donald Trump warned of "tremendous" economic consequences for any country that provides "any type of lifeline" to Iran, Reuters reported, as the war between the two countries dragged on.
