SWISS MARKET INDEX(SMI)

ECONOMY OF SWITZERLAND
 The economy of Switzerland is one of the
world's most advanced economies.
 The service sector has come to play a
significant economic role, particularly
the Swiss banking industry and tourism.
 The economy of Switzerland ranks first in
the world in the 2015 Global Innovation
Index
QUCK FACT OF ECONOMY
 Currency is “SWISS FRANC”
 POPULATION: 8.3 million
 GDP (PPP): $708.80 billion 1.3% growth in
2018 5-year compound annual growth 1.4%
 GDP per capita $83,264 per capita
 UNEMPLOYMENT: 3.0%
 INFLATION (CPI): 0.6%
 FDI INFLOW: $26,340.2 million
 PUBLIC DEBT: 41.7% of GDP
 Swiss exports are based on Pharmaceuticals and Watches.
 The first place in Switzerland’s exports is the First place is
occupied by pharmaceuticals that represent almost of the
country’s total exports and second place occupied by Gold.
 Metal watches are the third exported goods by
Switzerland with a quota of . On a smaller scale Switzerland
exports jewels, medical devices and machinery.
 The countries Switzerland exports to are Germany that
imports 17% of Swiss goods, India that occupies the second
place with 11% goods imported from Switzerland, The
United States where Switzerland exports almost 9% of its
products and services followed by Hong Kong and France
where Switzerland’s exports reach 6%.
EXPORTS
 United States where Switzerland exports almost 9%
of its products and services followed by Hong Kong
and France where Switzerland’s exports reach 6%.
 Main export partners
Germany 14.2%
United States 10.6%
Hong Kong 8.7%
India 7.3%
China 6.9%
France 6.1%
Italy 5.4%
United Kingdom 4.8% (2015)
 Export is CHF $220 billion
 Export goods
 Machinery, Chemicals, Metals, Watches,
agricultural products
 Per capita Income is $53,260(2011)
Export Graph
IMPORTS
 IMPORT is $268.5 billion
 Main import partners are
Germany 20.7%
United Kingdom 12.8%
United States 8.1%
Italy 7.8%
France 6.7%
China 5.1%
Employment By Sector
Foreign Exchange
 In Switzerland, Foreign Exchange
Reserves are the foreign assets held or
controlled by the country central bank.
 The reserves are made of gold or a
specific currency.
 They can also be special drawing rights
and marketable securities denominated in
foreign currencies like treasury bills,
government bonds, corporate bonds and
equities and foreign currency loans.
 Current foreign exchange reserve is
757104 CHF million.
INTRODUCION of smi
 Introduced on 30 JUNE 1988
 Base line value was 1,500 points
 The SMI is Switzerland’s blue-chip index
and is made up of the 20 Swiss companies
with the highest liquidity, which are also the
same as the 20 largest companies from the
SPI.
 The companies listed in the SMI represent
around 85 percent of the entire market
capitalization traded on the Swiss share
market
 Current Index price is 8,538.31
 It is less 3.71% as compare to Last year.
 The SMI is traded each trading day
between 9:00 am and 5:30 pm.
 Market capitalisation CHF 1,145 billion
 Free float adjusted market capitalisation
is CHF 973 billion
SMI GROWTH CHART
Sector Weightage
HEALTH CARE SECTOR
 Healthcare in Switzerland is universal and
is regulated by the Swiss Federal Law on
Health Insurance. There are no free state-
provided health services, but private
health insurance is compulsory for all
persons residing in Switzerland (within
three months of taking up residence or
being born in the country)
 In 2017, Swiss pharma exports reached at a
record high of CHF 99 billion. Main exports
were comes from a pharmaceutical and
chemical products (45 percent of total
exports).
 Swiss main export partners were: Germany (19
percent of total exports), the US(15 percent),
France and Italy (6 percent each), China and
the UK (5 percent each).
 The total market share of pharma in SMI
is 37.52%.
 There are only three pharma companies
listed in the SMI i.e. Roche, Novartis,
Lonza.
 Roche is the world’s largest biotech
company, with truly differentiated
medicines in oncology, immunology,
infectious diseases, ophthalmology and
diseases of the central nervous system.
 Its market cap is CHF 181.88 billion.
 Novartis Swiss multinational pharmaceutical
company based in Basel, Switzerland. It is
one of the largest pharmaceutical companies
by both market capitalization and sales.
 Its market cap is CHF 185.05 billion.
 It is mainly focus on eye care products and
generic medicines.
Ecommerce in Switzerland
 Economic activity in Switzerland is beginning to
pick up again, with GDP forecast to grow 1.7% in
2018 and 1.8% in 2019
 Consumer goods market is saturated
 People have started buying online
 In recent years, ecommerce growth has been
healthy and in line with its EU-member
neighbours.
 Online shopping grew at a compound annual
growth rate (CAGR) of 15.4% in Switzerland in
2016, generating €9.8bn of sales
Switzerland at a Glance
Swiss Consumer Spending
 The average online spend per e-shopper
was €1,815 in 2015 – €271.32 more than
the European average – and an estimated
72% of Swiss people shop online at least
once a month.
 The most popular online product
categories are clothing, travel and
entertainment
Percentage of Sales through
Ecommerce
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