STOCK MARKET REPORT by GRIMALDI & PARTNERS

MONTH REVIEW - MARCH 2021

The international stock markets ended March with gains.

Supporting factors:

Hope that US President Joe Biden's trillion-dollar subsidies will contribute to an economic recovery.

Better than economic data expected by experts.

Confidence that vaccination advances will pave the way out of the pandemic

Particularly noticeable at TITLE LEVEL:

CREDIT SUISSE shares plunge after the hedge fund debacle - investors revolt

Credit Suisse has not let go of the debacle surrounding the US hedge fund Archegos. The share of the second largest Swiss bank has been under further pressure after the nightcap. Meanwhile, investors are harshly criticizing and demanding wage and bonus cuts in the management and board of directors.

The head of the shareholders' association Ethos, Vincent Kaufmann, recommends that shareholders vote against the discharge of the board of directors and against the bonus proposals of the management for the year 2020 at the upcoming general meeting on April 30th. The events surrounding Archegos management and the Greensill funds showed that the big bank had problems with its risk management: and for the latter, the board of directors was ultimately responsible, he told AWP.

With the refusal of discharge, the shareholders would retain their right to take legal action against the board of directors if necessary if the board of directors had not fulfilled its responsibilities, Kaufmann added.

SIKA takes over Brazilian mortar manufacturer Supermassa do Brasil

Sika expands in Brazil: The Zug-based construction chemicals manufacturer takes over the mortar manufacturer Supermassa do Brasil. With the takeover, Sika improves its position in the Minas Gerais region. This is one of the most important economic regions in Brazil, the company wrote in a press release. So far, the company has not had its own production facility there. Supermassa do Brasil has a leading market position in the region.

The company has annual sales of around 30 million francs and has around 50 employees, said Sika spokesman Dominik Slappnig when asked by the AWP news agency. According to the announcement, it mainly offers tile adhesives and facade mortars. The company's BR Massa brand also has a strong presence in the distribution business and gives Sika better access to hardware stores and specialist dealers. This should also benefit the sale of other Sika products through these channels. Financial details were not given in the announcement

MONTH OUTLOOK - APRIL 2021

The month of March has shown itself to be more resilient than usual in previous years. The 1.70% rise in US 10-year Treasury yield appears to be running out of pulses. Despite the rapid rise, government 10-years-yields remain at a low level by historical standards. At the moment, economic optimism and vaccination progress are the main drivers in the stock markets. An unexpected rise in inflation and thus a surprising rise in key interest rates from the US Federal Reserve poses a risk that should not be underestimated in the course of the year. this could lead to upheavals in the stock markets.

We expect the positive trend to continue in April.

STOCK RECOMMENDATION OF THE MONTH