The construction chemicals and adhesives manufacturer Sika has continued to grow in a difficult economic environment. The previous forecast for the 2024 financial year is confirmed. As Sika announced on Friday, sales from January to September rose by 5.5 per cent year-on-year to CHF 8.9 billion. In local currencies, the increase was 9.1 per cent, while negative currency effects had a detrimental impact of 3.6 per cent. Almost all of this growth was attributable to acquisition effects, which increased sales by 8.1 per cent. Sika acquired its competitor MBCC in May 2023. The Group grew organically by 1.0 per cent with its products, such as those used to reinforce and seal building materials. This accelerated to 1.7 per cent in the third quarter of the year, with Sika once again gaining market share. In terms of profitability, Sika was able to achieve significant growth - thanks in part to efficiency gains and synergy effects from the MBCC acquisition. Operating profit at EBITDA level rose by 13.2 per cent to CHF 1.7 billion. The corresponding margin reached 19.1 per cent (previous year 17.8%). Overall, Sika recorded an even more significant jump. Net profit rose by 25.3 per cent to CHF 922.6 million. Looking to the future, Sika is confident of its ability to continue successfully implementing its strategic goals. The aim is to generate sales growth in local currencies of 6 to 9 per cent and a disproportionately high increase in earnings before interest, taxes, depreciation and amortization (EBITDA).

The Swiss stock market edged slightly higher on Thursday. The SMI gained 0.2 per cent to 12,173 points. Among the 20 SMI stocks, there were 11 gainers and 9 losers. A total of 14.92 million shares were traded (Wednesday: 13.23 million). The SMI was held back by heavyweight Nestlé, which closed down 0.7 per cent. Sonova was the SMI laggard (-1.2%). The day's winner was the Lonza share, up 2.8 per cent. The production company expects accelerated sales growth in the fourth quarter. In the third quarter, it benefited from solid momentum in the biologics business, the company announced without providing figures. The company, which is active in the pharmaceutical, biotechnology and nutrition sectors, expects a high level of contract signings. Richemont (+1.9%) and Swatch (+2.9%) performed well on the market. In the luxury segment, Hermes posted surprisingly positive figures. Kuehne + Nagel rose by 1.8 per cent, taking third place in the SMI. An increased earnings forecast from Hapag-Lloyd provided a boost here. In second place, Galderma gained 1.3 per cent on the news of record sales in the first nine months. At the same time, the dermatology group confirmed and specified its sales forecast for the year as a whole. Galenica's quarterly figures were also well received, with the share price rising by 2.7 per cent.

Europe
The European stock markets closed on a timid rebound on Thursday on the back of easing bond yields as investors continued to examine a flurry of quarterly results. The Stoxx Europe 600 index closed up 0.1% at 518.98 points. In Paris, the CAC 40 and the SBF 120 each gained 0.1%, to 7503.28 and 5,688.53 points respectively. In Frankfurt, the DAX 40 added 0.3% to 19,443 points, while London's FTSE 100 edged up 0.1%. Bic jumped 13.6%, the biggest gainer on the SBF 120 index, as the manufacturer of stationery, lighters and shavers raised its adjusted operating margin target for 2024. In the automotive sector, Michelin fell 8.2% after lowering its operating profit target for 2024, while Renault gained 4.7% after reporting higher third-quarter sales and confirming its outlook for the current year. Luxury groups Hermès and Kering climbed 1.1% and 2% respectively, despite very mixed performances in the third quarter. The former saw its sales rise by 10.1%, while those of the latter fell by 15%. Retailer Carrefour (-1.8%) fared slightly better than analysts expected in the third quarter, with like-for-like growth of 8.8%, driven by Latin America. However, sales declined in Europe. Barclays Bank (+4.2%) rallied on the London Stock Exchange after reporting better-than-expected third-quarter results, buoyed by a rebound in investment banking activity and the continuing positive impact of high interest rates.

United States
On Thursday, the Nasdaq gained 0.8% and the S&P 500 rose 0.2%, while the Dow industrials pulled back 0.3%. The Russell 2000 rose 0.2%, breaking a five-session losing streak. A surprisingly strong earnings report from Tesla sparked a rally in the electric-vehicle maker’s shares, leading tech stocks higher. Tesla boosted the tech-heavy Nasdaq Composite, while the S&P 500 snapped a three-day losing streak. The blue-chip Dow industrials fell for a fourth consecutive session. Shares of Tesla closed up 22% in their best day since 2013 after the company reported a 17% year-over-year increase in net income for the third quarter and CEO Elon Musk signaled high growth in 2025. The Dow was weighed down by IBM shares, which fell 6.2% after the company missed Wall Street’s forecast on revenue. Boeing also dragged on the Dow, falling 1.2% after its largest union extended a multi-week strike. Among economic data out Thursday, initial jobless claims fell to 227,000 in the latest week, fewer than economists expected. Sales of new single-family homes in the U.S. rose 4.1% in September, more than economists projected. Southwest Airlines slipped 5.6% despite the carrier posting a narrower quarterly loss than last year. UPS and Mattel shares rallied 5.3% and 4.4%, respectively, after quarterly results. T-Mobile shares gained 5.7% after the telecom company raised its guidance and reported earnings above analysts’ expectations.

Asia
Asian stocks were mixed on Friday. The Nikkei 225 index fell by 1 per cent to 37,747 points. Investors are disposing of financial and electronics stocks. Canon dropped 1.7 per cent after the company lowered its sales and profit targets for this year. On the Shanghai stock exchange, the Composite Index rose by 0.8 per cent, while the Hang Seng Index in Hong Kong gained 1.1 per cent. Meanwhile, the Chinese central bank left an important interest rate, the one for the medium-term credit facility (MLF), unchanged at 2.00 per cent on Friday and used it to pump 700 billion yuan into the domestic banking system. In Seoul, the Kospi is up 0.3 per cent. Among the individual stocks, KB Financial advanced 7.3 per cent after the bank exceeded expectations with its business figures. SK Hynix (+1.9 per cent) continues to benefit from the convincing figures published the previous day.

Bonds
U.S. government debt yields slipped on Thursday. The 10-year Treasury note yield declined by 3 basis points to 4.209%. The 2-year Treasury note yield shed one basis point to 4.081%. For the time being, the scenario of a 25 basis point (0.25 percentage point) rate cut by the US central bank in November continues to be the overwhelming consensus, according to CME Group's FedWatch tool.

Analysis
Citi lowers Temenos target to CHF 65 (66) - Neutral
RBC raises Schindler target to CHF 270 (260) - Outperform
Vontobel downgrades Inficon target to CHF 1,230 (1,270) – Hold

Produced by MBI Martin Brückner Infosource GmbH & Co. KG on behalf of Swissquote. All news is acquired with journalistic accuracy. No liability is assumed for delays or errors.