Oct. 28 (Bloomberg) -- Switzerland stocks advanced, with the benchmark Swiss Market Index poised for its biggest monthly gain in more than two years, as investors watched Europe’s efforts to raise money for its enhanced bailout fund.
Adecco SA rose 2.7 percent after the world’s largest temporary-staffing company signed a 600 million-euro ($851 million) revolving credit facility to refinance debt. Newron Pharmaceuticals SpA sank 15 percent after Biotie Therapies Oyj pulled out of an agreement to buy the biotechnology company.
The SMI, a measure of the biggest and most actively traded companies, added 0.5 percent to 5,852.66 at the close in Zurich, for a 1.7 percent gain this week. The gauge rallied 2.2 percent yesterday as euro-area leaders agreed at a summit in Brussels to expand the region’s bailout fund, recapitalize banks and push for greater budget control among euro-area countries. The broader Swiss Performance Index rose 0.4 percent today.
“Whilst traders piled back into risk yesterday, there is still an underlying air of caution,” Jonathan Sudaria, a trader at London Capital Group, wrote in e-mailed comments. “Given that the huge amount of uncertainty ahead of the summit and the threat of the imminent collapse of the euro zone have been removed, for the time being, traders are likely to continue pushing markets higher.”
The SMI has climbed 5.8 percent so far in October, heading for the biggest monthly gain since July 2009.
Adecco advanced 2.7 percent to 45.17 Swiss francs. The company signed a new loan to replace a 550 million-euro deal signed in 2008 that paid 40 basis points more than the European interbank offered rate, according to data compiled by Bloomberg.
Newron Pharmaceuticals sank 15 percent to 3.58 francs. Biotie Therapies will use its right to terminate an agreement to acquire the company and will be entitled to a breakup fee of 1.5 million euros from Newron.
Biotie said it decided to end the deal after it estimated a material adverse effect from Newron getting back full global rights to safinamide from Merck Serono as of April 2012.
Rieter Holding AG jumped 6 percent to 185 francs. The stock was raised to “buy” from “neutral” at Helvea AG.
Basilea Pharmaceutica AG rallied 4 percent to 40.6 francs. The company will hold an extraordinary meeting of shareholders Nov. 29 on the request of HBM Bioventures AG, one of its investors, Basilea said. Shareholders will vote on a proposal to add board members.
Logitech International SA, the world’s biggest maker of computer mice, tumbled 3.4 percent to 8.64 francs. Citigroup Inc. advised selling the shares, saying the company’s full-year guidance is a stretch.
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