Bloomberg News

Swiss Stocks Rebound From Rout as Credit Suisse Shares Lead Gain

June 21, 2013

Stocks in Switzerland rebounded from the biggest slide in 20 months as investors bought shares trading near the cheapest valuations since February.

Credit Suisse Group AG, Switzerland’s second-largest lender, advanced 1.2 percent after tumbling 4.2 percent yesterday. Addex Therapeutics Ltd. jumped 6.5 percent.

The Swiss Market Index (SMI) gained 0.6 percent to 7,539.56 at 10:05 a.m. in Zurich. The gauge plunged 3.1 percent yesterday after Federal Reserve Chairman Ben S. Bernanke said the U.S. central bank may cut bond purchases later this year if the world’s largest economy strengthens in line with its forecasts. The broader Swiss Performance Index (SPI) rose 0.4 percent today.

“What you have is a change in environment towards normalization,” Virginie Maisonneuve, who helps oversee $359 billion as head of global equities at Schroder Investment Management Ltd. in London, said in a phone interview. “The market needs to adjust. In this change there is going to be fear and some companies that are good companies will suffer. Those cases will definitely bring buying opportunities.”

The SMI yesterday closed at 14.2 times its members’ estimated earnings, the cheapest valuation since February, according to data compiled by Bloomberg.

Equities may have bigger swings than usual today as futures and options contracts expire in a process known as witching.

Credit Suisse (CSGN) rose 1.2 percent to 25.65 Swiss francs. Addex, the biotechnology company based in Geneva, rallied 6.5 percent to 3.62 francs, rebounding from four days of losses.

To contact the reporter on this story: Alexis Xydias in London at axydias@bloomberg.net

To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net


Soul Searcher
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus