Swiss Stocks Decline for Second Day Amid Greek WranglingCorinne Gretler and Namitha Jagadeesh
Stocks in Switzerland fell for a second day as Greek politicians debated the closure of the state broadcaster overnight, renewing concern over the stability of the country’s government.
Nobel Biocare Holding AG lost 4.8 percent after UBS AG added the shares to its “least-preferred” list. Credit Suisse Group AG and UBS AG, Switzerland’s biggest banks, each slid more than 2 percent. Givaudan SA, the world’s largest maker of flavorings, added 1.9 percent. Newron Pharmaceuticals SpA rose to a nine-month high as the Italian drug developer said it will give details of more benefits of its safinamide treatment.
The Swiss Market Index lost 0.2 percent to 7,656.83 at the close in Zurich. The gauge retreated yesterday as the Bank of Japan refrained from expanding stimulus and Treasuries sank amid speculation the Federal Reserve will trim bond purchases. The equity benchmark has pared this year’s gains to 12 percent, from as much as 23 percent on May 22. The broader Swiss Performance Index also slid 0.2 percent today.
Greece’s ASE Index fell 3.2 percent as MSCI Inc. cut its status to an emerging market from a developed country.
“Greece probably didn’t need nor want the nominal re-classification of their development status this morning, but they were given it any way,” William Nicholls, a trader at Capital Spreads in London, wrote in a note. “In the wake of their equivalent of the BBC effectively going under, things are not looking good in the North-East Mediterranean,” he wrote, referring to the public-service British Broadcasting Corp.
Stocks extended a drop as members of Greece’s Pasok and Democratic Left parties submitted a draft law for the parliament to revoke a government decision to shut down the nation’s public broadcaster ERT overnight. The two parties make up the coalition along with Prime Minister Antonis Samaras’s New Democracy.
Nobel Biocare lost 4.8 percent to 11.85 Swiss francs after UBS added the shares to its “least-preferred” list. Rising restructuring costs could lead analysts to downgrade earnings estimates for the world’s second-biggest maker of dental implants, UBS said.
Credit Suisse fell 2.1 percent to 26.24 francs and UBS declined 2.1 percent to 16.15 francs.
Holcim Ltd., the world’s biggest cement maker by revenue last year, slipped 3.1 percent to 69.35 francs.
Givaudan gained 1.9 percent to 1,207 Swiss francs, posting the best performance on the SMI. The stock has rallied 25 percent so far this year.
Newron Pharmaceuticals advanced 2.5 percent to 9.21 francs, its highest price since September 2012. The maker of an experimental treatment for Parkinson’s disease said it will give new details about the efficacy of its safinamide drug at a conference in Sydney on June 16. The additional results will be part of regulatory submissions Newron will make in the U.S. and Europe in the fourth quarter.