Swiss Stocks Decline as Syngenta, Roche Fall; ABB Shares Rise in Zurich

Stocks in Switzerland fell as a slide in Syngenta AG and Roche Holding AG offset gains in ABB Ltd. as investors waited for the results of stress tests of 91 European banks.

Syngenta fell 1.9 percent after it was downgraded by Vontobel Holding AG. Roche and Novartis each fell more than 1 percent. ABB rose 1.4 percent after the stock was upgraded at Societe Generale SA. Financial shares slipped ahead of a report that will show which banks need more capital.

The benchmark Swiss Market Index fell 0.4 percent to 6,168.65 at 12:11 a.m. in Zurich, on course to end the week down 0.3 percent. The SMI has retreated 12 percent from this year’s high on April 15 amid speculation that Europe’s debt crisis may derail the economic recovery and concern that Chinese authorities are cooling their nation’s rate of growth. The broader Swiss Performance Index slipped 0.2 percent today.

European banking regulators will publish stress tests from 6 p.m. Brussels time today. The regulators have assessed whether the banks have enough capital, defined as a Tier 1 ratio of at least 6 percent, to withstand a recession and a sovereign-debt crisis, according to a document from the Committee of European Banking Supervisors. Lenders that fail the tests will have to raise additional capital.

Syngenta Falls

Syngenta fell 1.9 percent to 225 francs, extending yesterday’s 5.3 percent loss after it was downgraded to “hold” from “buy” at Vontobel.

“Pricing is likely to remain in negative territory in the coming quarters and margins will hence be under pressure,” Patrick Rafaisz, an analyst at Vontobel Equity Research, said in a note to clients today. “The tailwind from lower raw materials prices is receding at a time when Opex is on the rise. We fail to identify any short-term triggers.”

Roche, the world’s biggest maker of cancer drugs, slipped 1.7 percent to 136.1 francs, erasing its 1 percent gain yesterday after it reported a 58 percent increase in first-half net income.

Novartis AG, the maker of the Diovan hypertension drug, dropped 1.1 percent to 51.25 francs, erasing yesterday’s 1.1 percent climb.

ABB gained 1.4 percent to 20.77 francs, rising for the third day. The world’s largest builder of electricity networks was upgraded to “hold” from “sell” at Societe Generale.

UBS AG, the Swiss bank, slumped 0.6 percent to 15.41 francs, its first loss in four days.

To contact the reporter responsible for this story: Adam Ewing in Stockholm at aewing5@bloomberg.net.

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