Swiss shares climb in afternoon as Fed move bolsters financial sector

Swiss shares climb in afternoon as Fed move bolsters financial sector

	Published : Fri, 17 Aug 2007 14:50 By : Agencies Print this Story

ZURICH (Thomson Financial) - Swiss shares climbed in a nervous afternoon market boosted by positive Wall Street futures after the US Federal Reserve lowered its discount rate, with banks and insurers leading the rebound.

At 3.25 pm, the Swiss Market Index was 190.89 points higher at 8,613.17, while the Swiss Performance Index was 142.79 points to 6,992.86.

The euro fell to 1.6283 sfr, while the dollar dropped to 1.2068 sfr.

'There's a short-term rebound in the financial sector after the Fed lowered the discount rate,' said a Zuercher Kantonalbank trader.

The move, which aims to give liquidity to the market, propelled Wall Street futures higher, triggering a new round of buying in the SMI.

Credit Suisse surged 4.5 pct, or 3.5 sfr, to 80.70, and UBS gained 4 pct, or 2.50, to 64.30 sfr, as banking stocks across Europe pulled back from recent losses.

Julius Baer was last up 2.9 pct, or 2.15 sfr, at 75.40.

Zurich Financial rallied strongly, rising 3.4 pct, or 11 sfr, to 334.25, extending yesterday's gains following solid first-half results, while Swiss Re climbed 3.5 pct, or 3.40 sfr, to 99.65.

On the other side of the sepctrum, Ciba was down 2.1 pct, or 1.30 sfr, at 61.95, extending yesterday's falls after the Swiss speciality chemicals group's second-quarter results fell significantly below expectations, while fellow chemical Clariant was off 1.3 pct, or 0.20, at 15.45 sfr.

Among the market's heavyweights, Nestle was up 2.6 pct, or 12.50 sfr, at 493.50.

Novartis was up 0.45 at 63.20 sfr, and Roche up 1 sfr at 206.20 sfr.

Elsewhere in the healthcare sector, Nobel Biocare was last up 3 at 305 sfr, recovering from yesterday's fall after a German court ruling that found the group in breach of patent law.

Outside the SMI, shares of elevator and escalator maker Schindler were down 0.25 sfr at 73.75, as investors mulled the group's first-half results, which managed to beat forecasts but still lag behind the strong numbers released earlier by some of its rivals.

With sales growth of about 13 pct in the elevator & escalator business, Schindler is less dynamic than competitors Otis and Kone, Bank Vontobel said.

Starrag-Heckert, which also reported interim results today was 11 sfr higher at 730.

The machine tools maker earlier today said that net profit rose 58 pct to 5.7 mln sfr on the back of strong demand in all market segments and regions.

sarah.fenwick@thomson.com

at/slj

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