Swiss equities ended the trading week on a high note, with the Swiss Market Index recording an increase of 0.46% by Friday's closure. In the latest government data, it was revealed that Switzerland's gross domestic product grew by 0.4% in the third quarter, a slight decrease from 0.6% in the previous quarter.
Year-on-year, the economy has expanded by 2%, a rise from the prior year's growth of 1.5%. In a positive development, the KOF Economic Barometer surged to 101.8 points in November, up from a revised figure of 99.7 points in October. This uptick indicates favorable trends across all production-related sectors, including manufacturing and financial services.
The KOF Swiss Economic Institute noted, 'After falling below the 100 mark in October for the first time since January, the KOF Economic Barometer reaches the 100 mark again this month. The Swiss economy is evolving steadily, albeit without strong dynamics.' Further reporting on the broader European economy reveals that the euro area's annual inflation rate experienced an increase to 2.3% in November, compared to 2% in October, as outlined in Eurostat's flash estimate.
When energy, food, alcohol, and tobacco are excluded, the inflation rate stabilized at 2.7%. In light of these trends, ING commented, 'With demand expected to remain weak, it doesn't look like the ECB should be overly concerned about the current uptick in inflation. While December is likely to come in high again regarding headline inflation, moderation can be expected for early next year.' Shifting focus to corporate news, Swiss full-cycle electronic components firm Cicor Technologies' major stakeholder, OEP 80, plans a public takeover offer following the conversion of its mandatory convertible notes, leading to OEP 80 acquiring 41.01% of Cicor's shares.
The board anticipates rejecting this mandatory offer, although a final decision is still pending, resulting in the stock gaining 1.72% at closing. Conversely, Dottikon ES reported a 2.71% decline after disclosing a 13.7% year-over-year drop in net income to 32.3 million francs for the first half of the fiscal year, while net sales rose by 2.9% annually..