Swiss equities experienced a modest uptick on Monday, with the Swiss Market Index rising by 0.04%. This slight increase comes as the markets take in recent local labor market data alongside the results of Germany's elections. Friedrich Merz is poised to take over the chancellorship from Olaf Scholz after his conservative CDU/CSU alliance emerged victorious in the February 23 national elections.
Merz's objective is to form a new government and establish a coalition by Easter, which will undoubtedly be a critical factor in shaping both regional and local economic policies. Turning our focus to Switzerland, data from the Swiss Federal Statistical Office indicates that the nonfarm payrolls increased by 0.9% year-over-year in the fourth quarter of 2024, a decrease from the 1.2% growth observed in the previous three months.
The total number of jobs reported by enterprises climbed to approximately 5.534 million. However, the landscape of job vacancies has shifted, with a reported decline of 17.1% compared to the same period last year. This decline points to an easing in recruiting challenges, even as enterprises maintain a cautiously optimistic employment outlook.
Despite employers’ careful estimations, the prospects for job growth remain positive, indicating resilience in the labor market despite potential headwinds. On the corporate front, shares of Belimo Holding ($BEAN) fell by 7.74% at close after the company's full-year 2025 sales expectations disappointed investors.
The company, known for its role in the Swiss heating, ventilation, and air-conditioning market, projected net sales in local currencies to just slightly exceed its five-year average, which was not enough to meet analysts' predictions of a 12.3% growth. Analysts at Baader Helvea expressed that Belimo's current valuation, reflected by a projected 2026E EV/EBITDA of 32.2x against a ten-year average of 22.3x, appears stretched.
They anticipate limited growth potential in the near term—estimated at under 4%. In their assessment, the existing share price already encompasses many favorable factors, prompting them to maintain a 'Reduce' rating and advise taking profits in the short term. In contrast, Alcon ($ALC) is initiating the rollout of its new Systane Pro Preservative-Free eye care product in the US this February, which signals a strategic expansion move as they plan to enter additional markets by 2026.
However, the stock observed a slight decrease of 0.74% at closing, reflecting cautious investor sentiment. In conclusion, as the Swiss stock market navigates through mixed corporate earnings and labor market developments, investors are encouraged to stay informed and evaluate their positions carefully.
With shifts in political leadership and corporate strategies influencing market dynamics, it is essential to remain vigilant in these evolving economic conditions..