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The Swiss stock exchange closed lower, with the SMI down 0.26% at 11,384.92 points, marking a 3% loss over the week and reducing year-to-date gains to just 2%. Investor uncertainty stems from the Federal Reserve's cautious approach to interest rate cuts and concerns over a potential U.S. government shutdown. Notable declines were seen in UBS, Partners Group, and various insurance companies, while Idorsia plummeted 50.35% due to delays in drug negotiations.
The Swiss stock exchange opened lower, with the SMI Index down 1.07% at 11,293.27 points, influenced by Wall Street's weak close and Asian market performance. Investors are reacting to the Federal Reserve's cautious stance on interest rate cuts, while today's "witch's day" may lead to increased volatility in trading. Notable declines include UBS (-1.54%) amid the Credit Suisse report, and Logitech (-1.59%), while Richemont fared better with a smaller drop of -0.56%.
Bitcoin's price dropped to $92,118, marking its lowest since early December, following a record high of $108,364 earlier in the week. The decline is attributed to investor concerns over inflation and interest rate signals from the US Federal Reserve, prompting a shift towards safer investments. Meanwhile, the Swiss bond market remains stable as traders prepare for the new year, with minimal activity noted ahead of key US economic data releases.
The SPI index fell by 0.22% to 15,567.40 points on Friday, with a market capitalization of €2.094 trillion. It has decreased by 0.336% this week and is down from 16,096.21 points a month ago, though it has risen 6.85% since the start of the year. Top performers include Pierer Mobility (+21.49%) and Banque Cantonale du Jura (+4.85%), while Peach Property Group saw the largest decline at -33.41%.
In 2025, equities are expected to dominate investment strategies as falling interest rates diminish the appeal of bonds, according to St. Galler Kantonalbank. With a projected GDP growth of 2.3% in the USA and 1.5% in Switzerland, the focus will be on dividend stocks, which are anticipated to yield around 3%. Meanwhile, cryptocurrencies like Bitcoin are gaining interest but remain highly volatile and speculative.
Idorsia is cutting up to 270 jobs globally, primarily in research and development, as part of cost-saving measures amid ongoing financial struggles. The Basel-based pharmaceutical company has also entered exclusive negotiations for worldwide rights to its blood pressure drug Aprocitentan, expected to yield $35 million. Following the announcement, Idorsia's stock rose by 7%, although it remains down 64% since January, currently valued at CHF 0.81.
Idorsia's share price dropped 2.64% to EUR 1.604 on October 2, 2024, amid ongoing financial difficulties, including a negative price/earnings ratio of -0.93 and a net loss of EUR 300 million last year. With a market capitalization of EUR 303.2 million, investor concerns are mounting as they await the quarterly report on October 20, which may provide insights into the company's four drug candidates in clinical phase 3.
Idorsia, the Swiss biotech firm, faces significant financial challenges despite recent progress in product development, with its share price plummeting 36.94% to EUR 1.426. However, the company has received US approval for the antihypertensive drug aprocitentan and presented new data on the sleep aid daridorexant, which could enhance sales in the medium term. Investors are keenly observing the upcoming weeks to see if Idorsia can stabilize its finances while capitalizing on its growth potential.
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