After the spectacular entry of Alcon in the spring of the circle of Swiss blue chips, is not likely to change in this year’s Revision in the summer. The top stock market League is also dominated in the future by the pharmaceutical sector and Nestlé.
In April, has been taken Alcon after the spin-off of Novartis directly in the Swiss Market Index (SMI). This is an exception, which can occur in case of large IPOs or delisting and Takeovers. Otherwise, the exchange will be calculated indexes usually only once in a year.
The so-called ordinary index review of SIX Swiss exchange takes place the middle of the year and occurs in September in effect. In about a month, communicate what has to be changed only by SMI, the Swiss Leader Index (SLI) or the SMI Mid (SMIM) – or not.
The Swiss benchmark index SMI comprises the 20 largest and most liquid securities. Which securities are included therein, will be calculated on the basis of the average market capitalization and annual trading volume. Significantly, the period 1 is. July up to 30. June.
– Food and Pharma at the top of
is How to active the trading of a stock, is not to be underestimated as a criterion, and can be a decisive factor. The market value of the freely tradable share float free, however, is crucial. Most of the SMI stocks are fully free float, such as, for example, Nestlé, Novartis and UBS.
but There are securities, where the founder’s family or descendants still hold a larger share. About Kuehne+Nagel, the capitalization is not enough for the SMI, because the Company Klaus-Michael Kuehne owns more than half of the shares. In the case of Swisscom, in turn, the Confederation holds a majority, and only 49 percent of the shares are freely tradable. Nevertheless, the papers of the Telecom group are included in the SMI.
Unchallenged, Nestlé, Novartis and Roche, as the SMI stay-heavy weights. Its market capitalisation makes up more than half of the benchmark index. The removal of the eyes has saved healing Alcon nothing changed. Even if Novartis is worth less, defended the pharmaceutical value of its rank 2 according to Nestlé, and ahead of Roche.
But also Alcon no light-weight and is expected to come in view of the capitalization of about at rank 10. Overall, an increase in the dominance of the health industry – even though the weight of the three heavy weights in the SMI is capped at 18 percent.
A question of money
inclusion in the SMI is not only a question of prestige, it’s also about money. A stock is included in the index, you must Fund that represent the index buy the stock. “In fact, the largest institutional investor are based very heavily on the SMI, and then buy blind,” says Fund Manager Urs Beck of EFG Asset Management.
Also in SLI, which summarizes the 30 most important title of the Swiss stock exchange together – which are called in the stock market jargon, even “blue chips”, is likely to remain after the youngest was also the same. Great attention is given to the SMI Mid (SMIM), which consists of those 30 companies that rank immediately behind the SMI, so the squares 21 to 50 investors. The Segment is trading on the very popular.
Than, for example, Julius Baer at the beginning of April of Alcon from the SMI was ousted and in the SMIM landed, some investors strongly Baer shares to buy. Because in the SMI, the papers of the asset Manager amounted to only a weight of less than 1 percent, are now but in the SMIM to the heavyweights.
That means in reverse, if a share from the SMIM rises in the SMI, at the end of the index-oriented investors, under certain circumstances, even from these titles. Leaving the SMIM could GAM in September, which broke in 2018 belonging. In their place, could then occur Pargesa or Bucher. (zas/SDA)