Swiss shares close flat supported by Novartis, Nestle UPDATE

Swiss shares close flat supported by Novartis, Nestle UPDATE

	Published : Wed, 10 Jan 2007 18:08 By : Agencies Print this Story

(Ipdating with full report)

ZURICH (AFX) - Share prices closed flat off earlier lows as Wall Street narrowed losses and with gains in heavyweights Nestle and Novartis supporting the index, dealers said.

The Swiss Market Index closed 12.4 points lower at 8,861.6, and the Swiss Performance Index closed 10.29 points down at 6,996.38.

The euro eased against the Swiss franc to 1.6126 sfr, while the dollar strengthened to 1.2456 sfr.

The SMI came off earlier lows -- driven by hefty falls in Asia overnight and weak US futures -- as gains in heavyweights lend the index support and Wall Street narrowed its losses, a local trader said.

Synthes led today's few gainers, up 3.20 sfr or 2.1 pct at 155.00, after Credit Suisse hiked the stock's target price to 190 sfr from 180 sfr and reiterated it's 'outperform' rating.

Speciality chemical stocks were also trading in green territory as oil prices fell, with Ciba up 0.25 sfr at 81.35 and Clariant climbing 0.05 sfr to 18.95.

Heavyweights Novartis and Nestle were also in the plus capping the index losses as Nestle climbed 2 sfr to 430 and Novartis rose 0.25 sfr to 71.70.

Peer Roche was down 0.80 sfr at 226.20, following the US Supreme Court's ruling that US biotech company MedImmune Inc does not infringe a Genentech production-patent known as Cabilly-II thus enabling MedImmune to go ahead with its own related lawsuit against Genentech, which is majority-owned by Roche.

The stock was unaffected by positive news that its Neorecormon drug has been approved in the EU for once-weekly anaemia treatment in patients with solid cancer.

Banks continued under pressure with Credit Suisse shedding 0.30 sfr to 83.70 and UBS falling 0.35 sfr to 74.50.

Other major decliners included Lonza, down 1.50 sfr or 1.4 pct at 108.00, Baloise falling 1.60 sfr of 1.3 pct to 120.60, and Syngenta easing 3.80 sfr or 1.7 pct to 224.20.

Outside the SMI, shares in retailer Jelmoli jumped 82 sfr or 14.8 pct to 635, after announcing a broad range of restructuring measures, possibly including the sale or spin-off and later IPO of its real estate or retail units.

Basilea shares climbed 13.20 sfr or 6.2 pct to 227.00, after the announcement of positive Phase-III trial results for the skin infection treatment Ceftobipro.

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