The Swiss equity market concluded the week with modest gains, as the benchmark Swiss Market Index (SMI) rose 0.27% to close at 13,836.89 on Friday. The index remained near its 52-week high, with trading largely dictated by a flurry of corporate earnings reports and strategic announcements from several major constituents.
Earnings Power Gains for Construction and Insurance Giants
Leading the advancers, Sika AG shares climbed 3.54% to 158.15 Swiss francs. The specialty chemicals company reported full-year profits that exceeded its target and provided an optimistic forecast for 2026. The firm projects sales growth between 1% and 4% in local currencies for that year, targeting an EBITDA margin in the range of 19.5% to 19.8%.
Zurich Insurance Group also posted a solid gain, with shares rising 1.61% to 567.80 francs. The insurer forecast record earnings for 2025 and increased its proposed dividend to 30 francs per share. It reported a business operating profit of $8.9 billion, with a property-and-casualty combined ratio of 92.6%, indicating profitable underwriting. Chief Executive Mario Greco stated the group remains on track to achieve its 2027 objectives.
Swiss Re Advances on Strategic Acquisition
Swiss Re Ltd. saw its shares increase 1.10% to 129.20 francs following an announcement from its Corporate Solutions division. The unit has agreed to acquire the Global Trade Credit and Surety business from QBE Insurance Group. The portfolio is expected to generate approximately $200 million in annual premium revenue. Ivan Gonzalez, CEO of Swiss Re Corporate Solutions, described the transaction as a significant milestone that will expand the group's platform in credit and surety. Regulatory approvals for the deal are anticipated to take several months.
Siegfried Stumbles on Customer Uncertainty
In stark contrast, Siegfried Holding AG was the session's most significant decliner, plummeting 8.78% to 82.10 francs. The contract development and manufacturing organization (CDMO) met its 2025 profitability targets but issued notably guarded guidance for 2026. The company reported net sales of 1,327.8 million francs and core EBITDA of 312.3 million francs. Looking ahead, Siegfried anticipates only low-single-digit growth for its drug substances unit next year, citing pending confirmation of a key customer order for a major product. Its drug products segment, however, is projected to grow at a high-single-digit rate.
Nestlé Pares Gains, Novartis Steady
Nestlé S.A. shares retreated 0.64% to 80.91 francs, giving back a portion of the substantial gains recorded in the previous session following its annual results. The food and beverage giant reported 2025 sales of 89.49 billion francs, with organic growth of 3.5%. It proposed a dividend of 3.10 francs per share. CEO Philipp Navratil noted improving organic growth and market share trends in the latter half of the year. Separately, reports indicated Nestlé is in discussions with private equity firm PAI Partners regarding a potential sale of a portion of its ice cream business.
Novartis AG shares were virtually unchanged, dipping a marginal 0.02% to 126.46 francs. The pharmaceutical company announced plans to divest its stake in Novartis India Ltd., aiming to raise up to $159 million through an offer for sale, with an option to sell additional shares.
Market Context and Forward Risks
The trading session unfolded against a backdrop where European shares reached a record high, providing regional stability even as selective pressure emerged for smaller-cap stocks. Defensive sectors have increasingly served as a haven amid market volatility. Investors now look ahead to the Swiss National Bank's next monetary policy assessment scheduled for March 19.
Key risks for the market include the potential for a stronger Swiss franc to pressure export-oriented companies' reported sales and the possibility of renewed pressure on the construction sector if interest rates move higher. The conditional nature of guidance, as exemplified by Siegfried's "pending confirmation" caveat, introduces uncertainty, and strategic deals like Swiss Re's acquisition face a prolonged approval timeline.
