Financial Wire

Swiss Market Index Recovers; Sika, PolyPeptide Group Shares Jump

-- The blue-chip Swiss Market Index bounced back on Tuesday, closing 0.94% higher, as investors digest the latest economy-related and corporate releases while keeping an eye on geopolitical developments.

On the macroeconomic front, the International Monetary Fund lowered its 2026 global growth forecast to 3.1% in its April World Economic Outlook report, down by 0.2 percentage point from its previous estimate, under the assumption that the ongoing conflict in the Middle East remains limited in duration and scope. For 2027, the global growth is still expected to stand at 3.2%.

For the euro area, the economic growth projections for 2026 and 2027 were both trimmed by 0.2 pp to 1.1% and 1.2%, respectively, while the estimates for the UK were cut by 0.5 pp and 0.2 pp to 0.8% and 1.3%.

Back home, Swiss President Guy Parmelin and Federal Councilor Karin Keller-Sutter are set to attend the 2026 IMF and World Bank Spring Meetings and G20 finance ministers meeting in the US this week, according to Switzerland's Federal Council. Swiss National Bank (SNBN.SW) Governing Board Chairman Martin Schlegel will also be part of the delegation.

"The Spring Meetings will focus on global economic and development policy challenges. In the current environment of geopolitical conflicts and trade tensions, it is particularly important for Switzerland to advocate reliable economic relations and open markets in multilateral bodies and bilateral contacts. Healthy public finances, price stability and a robust global monetary and financial system are also crucial for a resilient economy and lasting prosperity," the government said.

Over to corporates, Sika (SIKA.SW) reported a 7% year-over-year drop in first-quarter net sales to 2.49 billion francs. The result was dented by a foreign currency impact of 213 million francs, which the Swiss specialty chemicals group mainly attributed to the franc's strength against Asian currencies and the US dollar. For full-year 2026, the company reaffirmed its sales growth guidance of between 1% and 4% in local currencies. The stock gained 7.94% at closing.

PolyPeptide Group (PPGN.SW) also saw its shares rise 4.46% after disclosing that it is at an early stage of reviewing potential strategic options to further improve its long-term value for shareholders. Amid market chatter that it drew takeover interest from certain investors, the Swiss contract development and manufacturing organization noted that it has yet to decide on the review.

Related Articles

Research

Research Alert: Alk: Q1 Loss Widens On Fuel Headwinds; Company Suspends Full-year Guidance

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:ALK reported Q1 adjusted EPS of -$1.68, widening from -$0.77 in the prior year and missing the -$1.55 consensus, while revenue of $3.3B (+5.2%) met expectations. Unit revenue rose 3.5%, led by strong corporate travel (+19%) and premium segments, but unit costs increased 6.3% from airport, maintenance, and pilot training pressures. The Hawaiian integration and Alaska Accelerate strategy are delivering results ahead of schedule, with Seattle-Tokyo achieving profitability and 90%+ load factors within a year of launch. Management suspended full-year guidance due to fuel cost volatility, though ALK maintains confidence in its long-term trajectory. Looking ahead, Q2 fuel costs are expected to average $4.50 per gallon, representing a 51% sequential increase and $600M headwind equivalent to $3.60/share. We believe the $10 2027 EPS target will be increasingly challenging given current fuel dynamics and guidance suspension, but operational excellence during integration demonstrates management's execution capabilities.

$ALK
Asia

Victory Giant Technology Nets HK$19.9 Billion in Hong Kong IPO Ahead of Debut

Victory Giant Technology (HKG:2476, SHE:300476) raised HK$19.89 billion in net proceeds from its initial public offering in Hong Kong.The final offer price was set at HK$209.88 per H-share, according to a Monday after-market filing with the Hong Kong Stock Exchange.The China-based printed circuit board manufacturer offered 95.9 million H-shares in the global offering.The Hong Kong public offer was 431.15 times subscribed, with a final allocation of 8.3 million shares, representing about 8.2% of the total offering.The international offering was 18.5 times subscribed, with a final allocation of 87.5 million shares, or about 91.3% of the total offering.An over-allocation of 14.4 million shares was made under the global offering.Cornerstone investors, including CPE Rosewood Investment, Janchor Partners Pan-Asian Master Fund, Yunfeng Capital, Morgan Stanley, and HHLR Advisors, were allotted a combined 37.2 million shares, according to the filing.Victory Giant Technology is scheduled to debut on the Hong Kong bourse on Tuesday, April 21.

$HKG:2476$SHE:300476
Oil & Energy

US Oil Update: Crude Surges as Uncertainty Over US-Iran Talks Fuels Supply Fears

Crude oil futures climbed in after-hours trading on Monday as Iran signaled it may boycott upcoming peace talks in Pakistan, heightening fears that a fragile two-week ceasefire with the US will collapse when it expires on Tuesday.Front-month West Texas Intermediate crude futures jumped by 4.71% to $87.80 per barrel, while Brent futures rose 4.36% to $94.32/bbl.ING strategists said Iran's refusal to send its peace negotiating team to Pakistan opens the door to further escalation in the Arabian Gulf and higher oil and gas prices as the US-Iran ceasefire nears an end.Iran said its participation in the second round of peace talks with the US is subject to the fulfillment of certain preconditions, according to local media.Iran's Foreign Ministry spokesperson, Esmail Baghaei, said there are no plans for a second round of talks with the US, adding that Washington is not learning from experience and that this will not lead to good results, according to media reports."The United States' so-called 'blockade' of Iran's ports or coastline is not only a violation of the Pakistani-mediated ceasefire but also both unlawful and criminal," Baghaei said in a social media post on X.Fueling further uncertainty, the US negotiating team, which is expected to be led by Vice President JD Vance, has reportedly not yet departed for Pakistan, contradicting reports that it was already on its way to Islamabad for talks.On Monday, President Trump said, in a social media post, that he believed his administration's nuclear deal with Iran would be better than a 2015 international agreement reached after years of negotiations under the Obama administration.Meanwhile, the ongoing US-Iran standoff over the Hormuz threatens to deepen the global energy crisis. It is part of the unresolved issues, which include Iran's nuclear enrichment program and Israel's ongoing invasion of Lebanon.The ceasefire between the two sides appeared in jeopardy over the weekend after Washington said it had seized an Iranian cargo vessel that tried to run its blockade and Tehran vowed to retaliate."The US blockade of the Strait of Hormuz is of course blocking Iranian oil exports. But it is also an action of disruption directed towards Europe and Asia," said Bjarne Schieldrop, chief commodities analyst at SEB Research.The US Navy fired on an Iranian cargo vessel in the Gulf of Oman on Sunday. The Navy later seized the ship, accusing the container vessel of trying to break through its blockade as Iran warned it would retaliate, heightening fears of a resumption in hostilities.The seizure follows Iran's attack on commercial vessels in the Strait on Saturday, including a container ship belonging to France's CMA CGM and two Indian-flagged ships that were attempting to cross the strategic waterway.