The news of the SNB deciding to cut Swiss’s operating costs was welcome news for the country’s aviation industry. The decision could have a negative effect on Swiss’s share price, as the company had lost so much money over the past year. Its stock price has fallen over the past few months, but investors can still expect an increase in profits in coming years. In addition, the SNB’s actions could help the Swiss avoid deflation, which has a corrosive effect on the currency.
While the move is a major boost to the franc, the announcement has a potentially negative impact on the price of Swiss shares, but investors should not be too alarmed. The franc’s appreciation is likely to offset the price declines for some foreign investors. However, if you’re planning on selling your shares, the franc rise could depress your stock prices.
The Swiss share price fell more than 10% last week. While the move has dampened stock prices, it has also reduced the franc’s appeal to foreign investors. The franc’s price hike has lowered the value of Swiss shares and has prompted some to sell. Despite the fall in the price of the franc, there is still some upside to the market. In the meantime, a strong Swiss economy means an opportunity for growth for the country’s airline industry.
