Swiss Stocks Decline From Six-Month High; Adecco Drops

Nov. 19 (Bloomberg) -- Stocks in Switzerland slipped, with the benchmark Swiss Market Index falling from its highest level in almost six months, as Adecco SA and bank shares fell.

Adecco, the world’s largest provider of temporary workers, slid the most in more than eight weeks. Credit Suisse Group AG and UBS AG, Switzerland’s biggest lenders, declined in line with their European peers. Sonova Holding AG advanced 3.5 percent as Citigroup Inc. said the world’s biggest hearing-aid maker may be increasing its share of the implants market.

The SMI lost 0.6 percent to 8,300.12 at the close of trading in Zurich. The measure has still surged 22 percent this year, heading for the biggest annual rally since 2005, as central banks around the world pledged to leave interest rates low for a prolonged period. The Swiss Performance Index also slid 0.6 percent today.

“Our attention on the data front turns to growth in the current quarter,” Philippe Gijsels, chief strategy officer at BNP Paribas Fortis in Brussels, wrote in a note dated today. “The recovery is not yet strong enough for central bank policy to become more restrictive. As long as the money flows, markets for risk will probably remain well supported.”

The volume of shares changing hands in SMI-listed companies was 25 percent lower than the average of the last 30 days, according to data compiled by Bloomberg. The SMI is trading at 16.2 times the projected earnings of its constituents, higher than the five-year average of 13.2 times.

Fed Minutes

The Federal Reserve will release minutes of its October policy meeting tomorrow. The document will reveal more details behind the decision to press on with $85 billion in monthly asset purchases. Fed policy makers will probably pare that pace to $70 billion at their March 18-19 meeting, according to the median estimate in a Bloomberg survey.

The world economy will probably expand 2.7 percent this year and 3.6 percent next year, instead of the 3.1 percent and 4 percent predicted in May, the Paris-based Organization for Economic Cooperation and Development said in a semi-annual report today.

The euro area’s nascent economic recovery lost momentum in the third quarter as growth in Germany slowed and France’s economy unexpectedly contracted. The OECD said the growth is “lagging and uneven” and unemployment “remains very high.”

Adecco declined 1.9 percent to 68.70 Swiss francs, posting the second-worst performance on the SMI.

UBS and Credit Suisse retreated 1.5 percent to 16.77 francs and 0.9 percent to 26.20 francs, respectively. A gauge of banking stocks slid 1.2 percent, for the second-worst performance of the 19 groups in the Stoxx Europe 600 Index.

Sonova climbed 3.5 percent to 129 francs. Citigroup said first-half results indicate it may be increasing its share of the market for hearing implants at Cochlear Ltd.’s expense.

Implenia AG advanced 1.7 percent to 63 francs after Switzerland’s biggest builder said it won orders of more than 100 million francs ($109.5 million) in the Zurich region.

PubliGroupe AG rallied 5.6 percent to 90.80 francs, its biggest gain since June 7, as the advertising company confirmed its forecast to break even on an operational basis this year.

To contact the reporters on this story: Alan Soughley in Singapore at asoughley@bloomberg.net; Inyoung Hwang in London at ihwang7@bloomberg.net

To contact the editor responsible for this story: Cecile Vannucci at cvannucci1@bloomberg.net