Swatch, the world’s largest maker of Swiss watches, rose the most in two weeks after Nomura Holdings Inc. said the stock remains one of its top picks. Dufry (DUFN) AG jumped the most in four months as UBS AG raised its rating on the shares.
The Swiss Market Index (SMI) gained 0.7 percent to 7,843.35 at 2:17 p.m. in Zurich, after falling yesterday before Cypriot lawmakers rejected a 5.8 billion-euro ($7.5 billion) bank- deposit levy. The broader Swiss Performance Index added 0.6 percent today.
“Investors seem to have realized that the euro won’t go under and that the euro zone won’t break up because of Cyprus,” said Alessandro Fezzi, senior market analyst at LGT Bank Schweiz AG in ZurichMarket. “Sentiment has changed very quickly, and fundamentals still look quite good.”
The equity benchmark last week climbed to its highest level since January 2008, as reports pointed to a strengthening global economy amid speculation that central banks will maintain stimulus measures.
The volume of shares changing hands in SMI-listed companies was 5.1 percent greater than the average of the last 30 days, according to data compiled by Bloomberg.
Luxembourg Finance Minister Luc Frieden called for the 17 euro-area finance ministers to reconvene quickly to put together a new package for Cyprus, after the rejection of the levy threw the earlier bailout plan into limbo.
Swatch rose 2 percent to 542 Swiss francs. Nomura said Swatch remains one of its top picks as it exploits “the Chinese middle-class opportunity.”
Dufry climbed 3.1 percent to 120.30 francs, the most since Nov. 19. UBS raised its recommendation for the operator of duty- free shops to buy from neutral.
“Its cash generation is strong and the return to like-for like growth in the second half of 2013 should be a key catalyst to support the shares,” Joern Iffert, an analyst at UBS, wrote in a note to clients today.
Novartis AG (NOVN) gained 1.5 percent to 67.45 francs, contributing the most to the SMI’s advance, as a gauge of European health-care companies posted the best performance of the 19 industry groups in the Stoxx Europe 600 Index. Roche Holding AG added 0.7 percent to 219.30 francs.
Komax Holding AG (KOMN) rallied 5.2 percent to 88.35 francs, the highest price since May. The manufacturer of wire processing machines is considering all options, including a sale, for its medical-technology and solar units, Finanz und Wirtschaft newspaper reported, citing Chairman Leo Steiner.
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