Swiss stocks are still rising, allowing the SMI to beat a new historical record at 10,100 points. This index rise takes on even more value when we know that the Swiss franc has been widely sought after for several months, in a context where investors are turning massively to safe havens.
On the last upward movement started at the end of August, the SMI's advance was 3.5%, driven by the banking sector. Credit Suisse gained more than 16% and so did UBS (+11%), with analysts believing that the decline in sector targets over 2019 is largely integrated into prices. The champion for the entire 2019 financial year remains Nestle, which leads the performance with 37% and thus consolidates its capitalisation at 318 billion dollars.
Graphically, the prices come back to test the upper line, around 10,100 points. At this stage of the configuration, the stakes are high. A new bullish breakthrough and the showing would venture into unknown territory. The main target, taking into account the carry-over effect of trends, would be positioned close to 10,400 points. On the other hand, a return below 10,000 points would place the SMI back into a prolonged reflexion scheme with a predominantly neutral focus.