Capital market review

The year 2020 started with rising share prices – in the confidence that COVID-19 would only lead to widespread lockdowns in China. However, with the spread of the virus in Europe, the stock markets experienced a sharp correction and the SPI Extra fell by over 30% within a few weeks. In this period, companies with a high market-capitalisation fared better than smaller companies, which are presumed to be more dependent on the economic cycle. As most of the containment measures for the first wave were withdrawn and the support measures for national economies went into effect, the stock markets also recovered steadily. Share prices suffered another short-term setback at the end of October due to a new tightening of measures to contain the second wave before two long-term drivers of share prices, namely low interest rates and the prospect of vaccines, ensured a recovery. As a result, the SPI Extra ended the year with a performance of 5.5%.

Arbonia shares corrected sharply during the first wave of the pandemic, due to a suspected disproportionate impact on the construction industry, and fell to a low of CHF 6.38 on 23 March 2020 (–49.4% compared to the beginning of the year). Not least due to the positive profit warning in July 2020, which showed the minor impact of the pandemic on Arbonia and better results as well, the share price was able to recover almost completely by the time the half-year results were announced in August 2020. The share price of Arbonia then suffered another setback due to the second wave of the pandemic but was able to recover again within a short time. The share price continued to rise until the end of the year, was boosted again by the second positive profit warning and ended the year at a price of CHF 14.16. Compared to the beginning of the year, the share price thus increased by 12.4%, which meant a significantly better performance than the SPI Extra. Compared to the all-year low, the growth even amounted to 121.9%.