The Swiss Market Index (SMI) will undergo a significant sectoral rebalance in September, adding two pharmaceutical companies while removing telecommunications provider Swisscom.
The changes, reported by Le Temps, underscore the growing concentration of the Swiss equity benchmark in the healthcare sector, which already holds a predominant share of the index.
The removal of Swisscom marks a notable shift for the telecom sector, which has seen reduced representation in the country's flagship index in recent years.
Conversely, the inclusion of two new pharma firms will further amplify the weight of healthcare stocks, potentially driving passive inflows toward the sector as index-tracking funds adjust their portfolios to match the new composition.
This rebalance occurs against the backdrop of a strong first half for the Swiss equity market.
The SMI has surged past the 14,000-point mark, cementing a robust performance driven by broad-based buying and resilient corporate earnings.