Switzerland's blue-chip stock market index continues to perform
Blue-chip index of Switzerland continues to perform well during the coronavirus pandemic. At the moment it has sustained three times less damage than other European indexes.
Swiss Market Index (SMI) does not have any direct connections to the most impacted sectors of the economy, such as oil production or air travel. Because of that, the benchmark lost only 10% in the first months of 2020. During the same time the pan-regional STOXX 600 tumbled 21%.
Switzerland is also a home to some of the best performers in the world. The largest food company in the world - Nestle - and two pharmaceutical behemoths - Roche and Novartis - are based in the country. Their performance tends to be good even in the most difficult economic turbulence. The companies make up almost 70% of the (SMI) and are among the biggest enterprises on the continent.
The same situation occurs in other broadset indexes. Large companies continue to carry major benchmarks during the crisis, despite the failures of smaller businesses.