Swiss Stocks Advance Most in Two Weeks as Adecco Rises
Stocks in Switzerland rose the most in two weeks, snapping a three-day drop for the Swiss Market Index, as Adecco (ADEN) SA shares rallied and investors awaited data that may show factory orders in Germany climbed in September.
Adecco, the world’s largest provider of temporary workers, climbed 5.5 percent after third-quarter profit exceeded analyst projections. UBS AG and Credit Suisse Group AG each rose at least 2 percent. Gottex Fund Management Holdings Ltd. rallied 9.7 percent after agreeing to take stake in a Chinese venture.
The SMI gained 0.9 percent to 8,224.31 at 9:41 a.m. in Zurich. The benchmark gauge rallied 2.6 percent in October as U.S. lawmakers reached a deal to avoid sovereign default and end a partial government shutdown. The broader Swiss Performance Index added 0.9 percent today.
The volume of shares changing hands in companies listed on the SMI (SMI) was more than double the average of the past 30 days, data compiled by Bloomberg show.
In Germany, a report at 12 p.m. in Berlin may show that show factory orders in Europe’s largest economy rose 0.5 percent in September, according to the median forecast in a Bloomberg News survey. Separate data will probably show that retail sales in the 17-nation euro area probably fell 0.4 percent in September, economists predicted before the report at 11 a.m.
Adecco gained 5.5 percent to 69.70 Swiss francs. Net income in the third quarter rose 61 percent to 190 million euros ($256 million), beating the 138.2 million-euro average estimate of five analysts in a Bloomberg survey.
The company also reiterated a target to achieve a margin based on earnings before interest, taxes and amortization of above 5.5 percent by 2015. Adecco cited its expectation that economic conditions will become more favorable by the end of this year.
“Business trends continue to move in the right direction and management executes very well,” Michael Foeth, an analyst at Vontobel Holding AG, wrote in a note to clients today.
To contact the reporter on this story: Corinne Gretler in Zurich at firstname.lastname@example.org
To contact the editor responsible for this story: Andrew Rummer at email@example.com