STOCK MARKET BLOG APRIL 2024

by the CEO Silvano Grimaldi of the independent asset management company GRIMALDI & PARTNERS AG

MONTHLY REVIEW

International stock markets ended the month of APRIL with losses.

DRIVING FACTORS

In the wake of a robust economic situation in the US, hopes for rapid easing by the US Federal Reserve have diminished.
Persistent concerns about stubbornly high inflation.
Continued rise in bond yields.
US labor costs rose more than expected at the beginning of the year.
US house prices have risen more than expected.

EQUITIES IN FOCUS

NOVARTIS surprises with figures and new president

After a strong start to 2024, the pharmaceutical company is raising its targets for the full year. And it has already found a successor for the chairmanship of the board of directors for the coming year.

The growth was driven by drugs such as the heart drug Entresto, the psoriasis drug Cosentyx, Kesimpta (MS), Kisqali (breast cancer) as well as the radioligand therapy Pluvicto and the cholesterol-lowering drug Leqvio.

Novartis earned 3.4 billion US dollars (+29%) in the first quarter. The bottom line was a group profit of 2.7 billion, compared to just under 2.2 billion in the same period last year. The increase is mainly due to the overall improvement in business development, the statement continues.

After the positive start to the year, Novartis management is raising the bar for the full year 2024. Sales are now expected to grow in the high single-digit to low double-digit percentage range at constant exchange rates. So far, Novartis has forecast growth in the mid-single-digit percentage range. For core operating profit, the company is now aiming for an increase in the low double-digit to mid-teens percentage range (previously: high single-digit range).

MONTHLY OUTLOOK

The persistently high inflation and the renewed rise in US long-term interest rates have weighed on the stock markets. On the other hand, the lack of an escalation in the conflict between Israel and Iran has provided a sigh of relief. The publication of quarterly figures from US big tech companies has confirmed that the current AI boom is on solid ground.

A consolidation on the stock markets after the rapid price gains at the beginning of the year is a good sign for the rest of the year. In any case, the expectation of many investors that economic growth will accelerate in the second half of the year is keeping the stock markets on their toes.

We expect a slightly positive trend on the stock markets for the month of May.

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