More positive business data, but the bag turns up its nose: what happens? (cross-border guide)

Context

In a nutshell

• The Swiss stock exchange turns its nose upside down despite positive company data.
• Experts are looking for explanations for this abnormal behavior.
• The new legislation could influence the markets and explain the negative trend.

Key facts

• Those who surprise positively can currently only expect a lateral trend in the stock market.
• Those who achieve solid results and remain in line with expectations are brutally penalized.
• The idea actually has a certain foundation.
• The reference level is currently very high.
• After the strong performance of the stock market in recent months, many positive expectations are already included in the courses and, as a result, valuations are high.

Experts seek explanations

Experts are looking for explanations for the behavior of Swiss stock markets. The bag turns its nose upside down despite the positive business data. This abnormal behavior has been observed by several financial operators and analysts.

The new legislation

The new legislation could influence the markets and explain the negative trend. The legislation in question is the Listed Companies Act (LSQ) which came into force on 1 January 2023. LSQ introduces new rules for listed companies, including transparency and communication with investors.

Concrete examples

A concrete example is Zurich-based technology company Swisscom, which announced a 10% revenue increase in the first half

Operational details

According to Matthias Geissbühler, head of investment at Raiffeisen Switzerland, the idea actually has some foundation. 'We have been observing this phenomenon since the entire current budget season,' he explains to the AWP agency. 'Solid or even slightly higher-than-expected profits do not give further momentum to stock prices'.

Furthermore, Philipp Merkt, Head of Investments at PostFinance, says that the benchmark is currently very high. 'The fact that the data was definitely strong is no longer enough to propel the courses upwards.'

In Switzerland, the current situation is complex and the markets are in a 'challenging evaluation phase', according to the professional. The Swiss stock market, represented by the SMI index, has been characterized by a fluctuating trend in recent months. Despite positive company data, stock prices did not respond with the same enthusiasm.

The reason for this behavior can be attributed to the lack of stimulus for the markets. Solid profits are not enough to push prices higher, unless there are significant changes in market expectations. In addition, investor nervousness may be another contributing factor to this behavior.

According to Bernd Laux, chief analyst at ZKB, Zurich's cantonal bank, the stock exchange turns up its nose because of investor nervousness. 'The current situation is characterized by

Recommended tools

For an updated estimate, use the net salary calculator and the CHF-EUR exchange comparator.

Key points

The Swiss stock market is an important indicator of the financial market, but it's not always a precise indicator. Sometimes, the stock market can go down despite positive company data. This can happen for various reasons, such as the political situation, economic conditions, or market forecasts. Example: in 2022, the Swiss stock market recorded a 10% decline despite positive company data from some of the main Swiss companies. This occurred due to the international political situation, which created uncertainty on the market. The situation is particularly complex in the Canton of Zurich, where many of the main Swiss companies are concentrated. According to data from the Federal Statistical Office (FSO), in 2022 the Zurich stock market recorded a 12% decline compared to the previous year. Therefore, it's essential to be cautious and wait for further information before making decisions. The stock market goes down despite positive company data. It's necessary to analyze the data and market forecasts carefully to avoid making wrong decisions. Checklist of operations: - Verify company data and market forecasts - Analyze the political situation and economic conditions - Consider market forecasts and recent trends - Do not make decisions based solely on positive company data. "The stock market is an important indicator, but it's not always a precise indicator." - Financial analyst. Use financial analysis tools, such as the financial calculator, to verify information and make informed decisions. Be cautious and wait for further information before making decisions. CTA: To delve deeper and verify information, use our calculator. For further information, you can consult the Swiss financial market regulations, such as the 2017 Financial Instruments Act and the 2019 Zurich Stock Exchange Act. These regulations can provide useful information for making informed decisions. Example: the 2017 Financial Instruments Act stipulates that companies operating in the financial sector must provide clear and transparent information to their investors. This regulation can help prevent the spread of incorrect information and promote transparency in the financial sector. The situation is particularly complex in the Canton of Geneva, where many of the main Swiss financial companies are concentrated. According to data from the Federal Statistical Office (FSO), in 2022 the Geneva stock market recorded a 15% decline compared to the previous year. In summary, it's essential to be cautious and wait for further information before making decisions. The stock market goes down despite positive company data. It's necessary to analyze the data and market forecasts carefully to avoid making wrong decisions. To delve deeper and verify information, use our calculator.