Swiss shares lower in afternoon trade on prospect of weaker Wall Street opening

Swiss shares lower in afternoon trade on prospect of weaker Wall Street opening

	Published : Wed, 06 Jun 2007 14:12 By : Agencies Print this Story

ZURICH (Thomson Financial) - Share prices were slightly lower in afternoon trade with Wall Street indicating a lower opening and the ECB's rate hike already priced in, dealers said.

At 2.50 pm, the Swiss Market Index was down 48.26 points at 9,365.97, and the Swiss Performance Index down 43.11 points at 7,614.65.

The euro fell to 1.6449 sfr, while the dollar dropped to 1.2168 sfr.

'The market is slightly lower because of the (currently) weaker US market, but we don't expect the new ECB interest rates to impact on Swiss banks since the change was in-line with expectations,' a Vontobel Bank trader said.

The ECB earlier raised interest rates 25 basis points to 4.00 pct.

Banking stocks were weaker across-the-board, with UBS shedding 1.1 pct or 0.90 sfr at 77.30 and Credit Suisse declining 1.2 pct or 1.15 sfr to 91.30.

Smaller rival Julius Baer succumbed to the downward trend, falling 1.5 pct or 1.15 sfr to 91.30.

In other financials, Zurich Financial Services dropped 1.1 pct or 4.50 sfr to 375.25.

Baloise lost 1.6 pct or 2.00 sfr at 125.80, while Swiss Re fell 0.50 sfr to 116.20 and Swiss Life eased down 1.6 pct or 5.25 sfr to 324.75.

In chemicals, Synthes fell by 0.40 sfr to 149.80.

Peers Lonza and Clariant were also down, dropping 0.60 sfr to 118.90 and 2.28 pct or 0.60 sfr to 20.20 respectively.

Syngenta eased 1.40 sfr to 225.70.

Meanwhile, in pharma stocks, Roche retreated 0.30 sfr to 222.30. The group earlier said its rheumatoid arthritis drug Actemra has successfully reached its goal in a multinational phase III study, with patients achieving a 'significant improvement' in symptoms.

Top performer here was heavyweight Novartis, trading 0.60 sfr up at 69.15 and shrugging off the overall negative trend.

Fellow heavyweight Nestle also showed some resilience and was last trading up 2.00 sfr at 480.00 after Lehman earlier today raised its target price to 545 sfr from 500, reiterating its 'overweight' rating of the Swiss food and beverage firm.

Fragrance and flavouring company Givaudan was this afternoon's other resilient performer, rising 2.00 sfr to 1180.

Outside the SMI, Swiss elevator and escalator maker Schindler dropped 1.9 pct or 1.45 sfr to 79.50.

The company earlier said it expects its 144 mln eur fine for its alleged participation in a pan-European lift cartel to be reduced.

sarah.fenwick@thomson.com

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