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.
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