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Swiss Stocks Fluctuate After Biggest Advance in More Than Three Months
Swiss stocks fluctuated after the Swiss Market Index climbed the most since May yesterday, as losses in SGS SA offset gains in luxury-goods companies.
SGS fell 2.3 percent as Morgan Stanley reiterated its “underweight” stance. Dufry Group plummeted as its biggest shareholder Advent International Corp. sold a third of its stake. Helvetia Holding AG lost 2.1 percent after posting a decline in first-half net income. Cie. Financiere Richemont SA rose 1 percent as Nomura Holdings Inc. upgraded Switzerland’s largest jewelry maker. Basilea Pharmaceutica AG gained 1.9 percent after being upgraded at Credit Suisse Group AG.
The SMI was little changed, falling less than 0.1 percent to 6,328.39 at 3:55 p.m. in Zurich. The measure, which climbed 2.5 percent yesterday, is down 9.2 percent from this year’s high on April 15. The broader Swiss Performance Index slipped 0.1 percent today.
“Long funds maintain a wait-and-see approach, though they tried to take some advantage of yesterday’s rally,” said Ricciardo Ricciardelli, managing director at Unifortune Asset Management SGR SpA. “The market has an evident negative bias. Macro data, and especially those tied to manufacturing activity and the labor market in the U.S., remain the main drivers.”
U.S. Home Sales, Jobless
The U.S. labor market has not improved in 2010, with the number of Americans seeking jobless benefits last week staying greater than the average this year of 463,000. Initial jobless claims fell by 6,000 to 472,000 in the week ended Aug. 28, in line with the median forecast of economists surveyed by Bloomberg News, Labor Department figures showed today in Washington.
Earlier today, a report showed that Switzerland’s economy expanded at 0.9 percent in the second quarter, a faster pace than economists had forecast as companies increased their spending to meet global demand. Gross domestic product rose 1 percent in the first quarter of 2010, the State Secretariat for Economic Affairs in Bern said today.
SGS retreated 2.3 percent to 1,519 Swiss francs. Morgan Stanley reiterated an “underweight” recommendation, highlighting the stock’s recent re-rating and saying it does not expect “any significant margin improvement, except for some cyclical recovery in the minerals and oil and gas division.” The world’s biggest goods inspector had its price estimate increased to 1,390 francs from 1,310 francs at the brokerage.
Dufry, the Swiss operator of duty-free shops, sank 7 percent to 92.80 francs. Joint book runners Morgan Stanley and UBS AG priced the sale of 2.93 million Dufry shares at 93 francs per share, according to two people close to the offer who asked to remain unidentified.
Novartis, Roche
The drugmaker Novartis AG’s shares lost 0.8 percent to 53.60 francs, while Roche Holding AG, the world’s biggest maker of cancer medicines, declined 0.4 percent to 139.50 francs.
Helvetia Holding decreased 2.1 percent to 332.25 francs, ending a four-day gain as Switzerland’s fourth-biggest insurer said first-half net income dropped to 155.5 million francs ($153.7 million) from a restated 158.5 million francs a year earlier.
Richemont advanced 1 percent as Nomura lifted its recommendation to “neutral” from “reduce.” Swatch Group AG, the maker of Omega and Breguet watches, added 1.5 percent to 339.80 francs.
Basilea Pharmaceutica rose 1.9 percent to 61.75 francs. The biotechnology company was upgraded to “outperform” from “neutral” at Credit Suisse.
Addex, Kuoni Reisen Jump
Addex Pharmaceuticals Ltd. increased 1 percent to 9 francs. The drugmaker said that a recently discovered drug candidate was effective in a model of Alzheimer’s disease.
GAM Holding Ltd. climbed 2.7 percent to 13.55 francs as the money manager that split from Julius Baer Group Ltd. was raised to “buy” from “hold” at Helvea SA.
Kuoni Reisen Holding AG gained 1.8 percent to 371.50 francs. The largest Swiss travel operator acquired Copenhagen- based Krone Golf Tours ApS. The acquisition will enable Kuoni to cut costs by merging the new business with Golf Plaisir, the Swedish golf travel specialist which it bought in 2008, Kuoni said.
Schmolz & Bickenbach AG decreased 3.7 percent to 29 francs. The company reported first-half net income of 4.4 million euros ($5.6 million) compared with a 149 million-euro loss a year earlier.
To contact the reporter on this story: Francesca Cinelli in Milan at fcinelli@bloomberg.net.
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