On Monday, Swiss stocks ended the day positively with the Swiss Market Index recording a modest gain of 0.10%. This uptick occurred amidst relatively light trading volumes as investors prepared for the upcoming New Year break. Notably, the Swiss stock exchange will be closed starting from New Year’s Eve on Tuesday and will resume operations on Friday. However, the economic landscape appears less favorable, as indicated by Switzerland's KOF Economic Barometer, which fell to 99.5 points in December, down from a revised 102.9 points in November.
This decline points to a pessimistic economic outlook for the nation. Several significant factors were identified as contributing to this downturn, including a weakening in key indicators across sectors such as manufacturing, various services, hospitality, external demand, and private consumption. According to the KOF Swiss Economic Institute, the data reveals that within the producing sector — which includes manufacturing and construction — various business activity sub-indicators exhibit mostly negative trends.
"Specifically, the sub-indicators pertaining to production activity, order backlogs, and exports are portraying unfavorable developments. Conversely, the sub-indicator for finished product inventories reflects slightly more optimistic conditions, standing in stark contrast to the generally gloomy outlook." This is telling of challenges faced by the Swiss economy in key sectors. In corporate developments, Novartis (traded as $NOVN) announced that its investigational drug, an intrathecal gene therapy referred to as onasemnogene abeparvovec (known as OAV101 IT), successfully met its primary endpoint during the phase 3 Steer trial.
The trial targeted treatment-naïve patients aged between two to eighteen years suffering from spinal muscular atrophy type 2 who have the ability to sit but have never been able to walk independently. The results showed that patients who received OAV101 IT demonstrated clinically significant improvements in motor function over one year, as measured by the Hammersmith Functional Motor Scale - Expanded scores, in comparison to the control group receiving a sham treatment.
Nonetheless, despite this positive news, Novartis experienced a slight dip of 0.14% in share value at the closing bell. In other news, Evolva (symbolized as $EVE.CH) saw its shares rise by 5.88%. This increase followed the announcement by Nice & Green, its principal investor, that it had divested its entire stake in Evolva to an undisclosed third party.
Previously, Nice & Green reported a significant 19.344% stake in the Swiss biotech firm, making this a noteworthy shift in the company’s shareholding structure..