Swiss Stocks Advance as U.S. Confidence Report BeatsTom Stoukas
Swiss stocks advanced, extending the benchmark index’s ninth monthly gain, as consumer confidence and house prices in the world’s largest economy increased more than forecast.
Logitech International SA climbed after Credit Suisse Group AG upgraded its recommendation for the shares. Basilea Pharmaceutica AG jumped to its highest price since June 2011 after saying its isavuconazole treatment has won orphan-drug status in the U.S.
The Swiss Market Index rose 0.7 percent to 8,221.22 at the close of trading in Zurich, bringing the monthly gain for the index to 4 percent. The benchmark gauge has surged 29 percent since August 2012, for its longest monthly rally since July 1997, as central banks around the world continued their asset-buying programs. The Swiss Performance Index gained 0.8 percent today.
“Global investors have bought the dip after a volatile recent week and are positive coming in to a shortened week in the U.S.,” Daniel Weston, a portfolio manager at Aimed Capital Management LLC in Munich, wrote in an e-mail.
In the U.S., consumer confidence rose this month to the highest level since February 2008. The Conference Board’s index rose to 76.2 from a revised 69 in April, data from the New York-based private research group showed today. The median forecast called for an increase to 71.2.
Separate data showed the S&P/Case-Shiller index of property values increased 10.9 percent in March from the same month last year, the biggest 12-month gain since April 2006, after advancing 9.4 percent in February. The median projection of 30 economists surveyed by Bloomberg called for a 10.2 percent advance.
Logitech, the world’s largest maker of computer mice, gained 0.8 percent to 6.30 Swiss francs, paring earlier gains of as much as 2.7 percent. The stock was upgraded to neutral from underperform at Credit Suisse, which cited an improving short-term outlook and a wider product portfolio.
Basilea jumped 6.8 percent to 72.40 francs after saying that the U.S. Food and Drugs Administration granted orphan-drug status to its isavuconazole treatment for invasive aspergillosis. The U.S. offers several benefits including a seven-year exclusivity for drugs addressing very small markets.
Cie. Financiere Richemont, the owner of the Cartier brand, advanced 3 percent to 91.65 francs. Swiss watch exports rose 5.7 percent in April from a year ago, a report showed today.
UBS AG and Credit Suisse, Switzerland’s largest lenders, added 1.5 percent to 17.47 francs and 2.2 percent to 28.64 francs, respectively. A gauge of European bank shares was the best performer among the 19 industry groups on the Stoxx Europe 600 Index.
Adecco SA, the world’s largest supplier of temporary workers, rose 2.8 percent to 56.80 francs. Deutsche Bank AG listed Adecco as one of its preferred stocks among companies whose revenues are closely linked to economic performance. Deutsche Bank has a buy rating on the shares.
Orascom Development Holding AG slid 1.4 percent to 10.30 francs. The hotel developer reported a first-quarter loss of 19.1 million francs ($19.7 million) compared with a loss of 4 million francs during the same period last year.