SMI : Index push + currency gain = double bonus
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 remained 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 rose to 3.5%, driven by the banking sector. Indeed, Credit Suisse gained more than 16% as well as UBS (+11%), with analysts believing that the decline in sector objectives over 2019 is largely integrated into prices. The champion for the entire 2019 financial year is still Nestlé, 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 index would know on unknown ground. The main target, taking into account the effect of trend carryover, would be positioned close to 10,400 points. On the other hand, a return below 10,000 points would put the SMI back into a prolonged pattern of reflection with a predominantly neutral focus.
Disclaimer: The information, charts, data, views, or comments provided by SURPERFORMANCE SAS are intended for investors who have the necessary knowledge and experience to understand and appreciate the information contained within. These items are disseminated for personal reference only. They do not constitute an offer or solicitation to buy or sell financial products or services, nor an investment advice.
The use of the information disseminated takes place under the investor's sole responsibility, without recourse against SURPERFORMANCE SAS. SURPERFORMANCE SAS will not be liable, whether in contract, in tort, under any warranty, for errors, omissions, improper investments, or adverse evolution of markets.