Swiss Stocks Rise; Novartis, Richemont Gain, Credit Suisse Falls
Novartis advanced 1.7 percent after the company’s new multiple sclerosis drug won approval in Russia. Cie. Financiere Richemont SA increased 3.1 percent after the maker of Cartier watches had its price estimate increased at Credit Suisse Group AG. (CSGN) Swatch Group AG (UHR) added 1.6 percent, while Transocean jumped the most in a month, gaining 8.2 percent.
The benchmark Swiss Market Index rose 0.7 percent to 6,467.69 at the 5:30 p.m. close in Zurich, rising 1.1 percent this week. The SMI has gained 8.8 percent since this year’s low on July 5 as concern abated that efforts by European governments to scale back spending may tip the economy into recession. The broader Swiss Performance Index climbed 0.6 percent today.
Novartis, which makes up 17 percent of the SMI’s weighting, gained 1.7 percent to 55.2 francs, the third consecutive increase. The drugmaker’s multiple sclerosis pill Gilenya won approval from Russian authorities, the company said today in a statement.
Richemont rose 3.1 percent to 44 francs. Credit Suisse raised its price estimate on the world’s largest jewelry maker to 47 francs from 45 francs.
“Richemont is a compelling emerging-market story,” Credit Suisse analyst Rogerio Fujimori wrote in a note to clients. “Richemont seems to be gaining share in watches and jewelery thanks to a superior multibrand portfolio. The group sits on a large and growing net cash position.”
Swatch, the world’s largest watchmaker, rose 1.6 percent to 350.4 francs, its third straight gain.
Transocean, the company that leased the Deepwater Horizon rig to BP Plc, increased 8.2 percent to 61.05 francs, extending yesterday’s 3.1 percent increase.
Credit Suisse, Switzerland’s biggest bank by market value, fell 0.5 percent to 46.04 francs.
Deutsche Bank AG (DBK), Germany’s biggest lender, dropped 4.6 percent in Frankfurt after people with knowledge of talks said the lender is considering a stock sale of as much 9 billion euros ($11.4 billion) to help boost its stake in Deutsche Postbank AG and meet new rules on capital reserves.
To contact the reporter on this story: Adam Ewing in Stockholm at email@example.com.