Swiss stocks advanced to their highest level since May as companies from ABB Ltd. to Logitech International SA reported profit that beat analysts’ estimates.
ABB rose to its highest price since May 2011 after the world’s largest maker of power transformers said that growing orders from China and Germany contributed to higher net income. Logitech International SA, which makes computer mice, jumped the most since April 2012. Credit Suisse Group AG fell the most in eight weeks as the lender posted a smaller increase in third-quarter profit than analysts had estimated.
The Swiss Market Index gained 0.2 percent to 8,233.15 at the close of trading in Zurich as a report showed Chinese manufacturing activity accelerated this month. The broader Swiss Performance Index also increased 0.2 percent today.
“Positive data out of China is supportive for markets,” said Daniel Rotzer, an investment adviser at LGT Bank Schweiz AG in Zurich. “Despite the underlying positive sentiment, Credit Suisse disappointed markets, and is weighing on the SMI as other banks are following it lower.”
The volume of shares changing hands in SMI-listed companies was 38 percent greater than the average of the past 30 days, according to data compiled by Bloomberg.
In China, a report from HSBC Holdings Plc and Markit Economics showed manufacturing climbed at a faster-than-expected pace this month. The preliminary reading of 50.9 for the purchasing managers’ index exceeded the 50.4 median estimate of analysts surveyed by Bloomberg News. Readings above 50 mean that activity expanded.
ABB climbed 5 percent to 23.05 Swiss francs. Net income rose 10 percent to $835 million in the three months through September, exceeding the $789.4 million average estimate of analysts surveyed by Bloomberg.
Logitech rallied 8.8 percent to 9.16 francs after posting second-quarter net income of $14.4 million. That beat the $9.8 million that analysts had projected. Sales of $532 million exceeded the $510 million analysts had expected.
Credit Suisse lost 2.8 percent to 29 francs. Net income of 454 million francs ($509 million) missed the 724 million-franc average estimate of nine analysts in a Bloomberg survey.
The investment bank’s pretax profit fell 53 percent in the quarter to 229 million francs from 483 million francs a year earlier, while the gross margin in the wealth-management business, which shows how much the bank earns on assets under management, dropped to 105 basis points from 111 basis points in the second quarter. A basis point is one hundredth of a percentage point.
“Third-quarter results came out below expectations,” Teresa Nielsen, an analyst at Vontobel Holding AG, wrote in a note. “Whereas we believe the investment bank will remain volatile around macroeconomic factors, we believe the weakness in wealth management could be an indicator also for the quarters to come.”