Improved Economic Growth Forecasts Lift Swiss Stocks; UBS Shares Gain

11:50 AM EDT, 09/25/2026 (MT Newswires) -- Swiss equities concluded the trading week in positive territory, with the Swiss Market Index closing 0.29% higher on Friday, amid upwardly revised growth assumptions for the local economy. Surveyed economic experts now expect Switzerland's real sports-adjusted gross domestic product to grow 1.7% in 2026, higher than the 0.9% forecast in June, according to the latest KOF Consensus Forecast. For 2027, the GDP growth estimate was edged up to 1.6% from the previous forecast of 1.5%, while the five-year projection was lifted to 1.7% from 1.6%. "Economic experts expect a stronger increase in real fixed investment both this year and next ... Economists have also significantly raised their expectations regarding developments in foreign trade: compared with the last survey, they have revised their consensus forecast for the current year from 0.5% to 2.5% and for the coming year from 2.0% to 2.3%," the KOF said. "Compared with the previous survey, the expected inflation rates for all three forecast horizons have been revised downwards." On the corporate front, UBS Group (UBSG.SW) is reportedly looking at ways to avoid new Swiss banking rules, including a possible merger with a foreign lender, after the upper house of Switzerland's parliament recently voted in favor of a proposal requiring the Swiss banking group to back its foreign units with 90% common equity tier 1 ⁠capital, sources told US news platform Semafor. UBS opposes the proposal. Meanwhile, an Insurance Australia Group subsidiary reached a settlement with UBS Group's Credit Suisse in a AU$2.8 billion lawsuit related to policies issued to failed financial company Greensill Capital. At the end of Friday's trading session, UBS shares gained 3.50%. Huber+Suhner (HUBN.SW) also saw its shares rise 3.44% after agreeing to purchase the connected intelligence business of UK-based mobile connectivity company Motion Applied, bolstering the Swiss electrical and optical connectivity group's rail communications portfolio as part of plans to invest in attractive technology-driven markets. In geopolitical news, Iran submitted a new plan to the US via mediators, proposing to reopen the Strait of Hormuz within seven days, if Washington agrees to meet its conditions, Iranian foreign minister Abbas Araghchi said on the sidelines of the UN General Assembly. Araghchi added that Iran is also willing to restart talks for a final deal to end the war.