Swiss Market Index Climbs for Fifth Day; UBS, ABB Lead Advancing Shares
Swiss stocks advanced for a fifth day as gains in UBS AG and Adecco SA outweighed a drop in German investor confidence and a rating downgrade for Greece.
UBS, Switzerland’s biggest bank, and Adecco rallied more than 2 percent. ABB increased 0.9 percent as Morgan Stanley recommended the shares.
The Swiss Market Index, a gauge of the biggest and most actively traded Swiss companies, rose 0.2 percent to 6,484.73, the highest close in more than a month. The broader Swiss Performance Index climbed 0.3 percent.
Greece’s credit rating was cut to non-investment grade, or junk, by Moody’s Investors Service late yesterday. The downgrade threatens to further undermine demand for the debt-strapped nation’s assets as it struggles to rein in its budget deficit.
German investor confidence plunged in June on concern that the sovereign debt crisis will undermine export prospects and crimp growth in Europe’s largest economy. The Mannheim-based ZEW Center for European Economic Research said its index of investor and analyst expectations, which aims to predict developments six months ahead, slumped to 28.7 from 45.8 in May.
UBS led gaining shares and extended the longest winning streak since April, adding 2 percent to 15.51 Swiss francs. The lower house of Switzerland’s parliament gave its final approval for a treaty allowing the disclosure of up to 4,450 UBS bank accounts to the U.S., while subjecting it to a popular vote.
“This is about our political credibility and our political reliability,” said Swiss Justice Minister Eveline Widmer- Schlumpf during the debate. A rejection would have caused “massive economic disadvantages.”
Adecco, the world’s largest supplier of temporary workers, rallied 2.6 percent to 56.1 francs. ABB rose 0.9 percent to 20.95 francs as the world’s largest builder of power- transmission networks was raised to “overweight” from “equal weight” at Morgan Stanley.
Bellevue Group AG rose 0.9 percent to 35.8 francs. Bellevue Asset Management created an independent advisory board to detect trends and investment opportunities in the health-care industry. The board will be chaired by ex-Roche Holding AG executive William Burns.
Cie. Financiere Richemont SA, the world’s biggest jewelry maker, dropped 0.7 percent to 41.8 Swiss francs, the biggest decline among 20 companies in the benchmark SMI.
Nestle SA lost 0.6 percent to 53.85 francs. The world’s biggest foodmaker said it began legal action against Sara Lee Corp. in France for alleged patent violations on its Nespresso coffee-making system.