Swiss shares move higher in morning trade tracking Asian markets, Swatch up

Swiss shares move higher in morning trade tracking Asian markets, Swatch up

	Published : Mon, 19 Mar 2007 10:37 By : Agencies Print this Story

ZURICH (AFX) - Share prices opened higher recovering some of last week's losses, following a strong performance on Asian markets, analysts said.

At 10.11 am, the Swiss Market Index was up 72.01 points at 8,789.64, and the Swiss Performance Index 53.38 points higher at 7,016.33.

The euro rose against the Swiss franc to 1.6096 sfr as did the US dollar to 1.2096 sfr.

'The SMI opened higher supported by gains across Asian markets and with gains in Swatch following expectation-beating full year results further boosting the index,' a local trader said.

Top gainer this morning was Julius Baer, up 4.10 sfr or 2.6 pct at 160, after the Swiss banking group said the Monetary Authority of Singapore has granted in-principle approval for it to establish a wholesale bank branch in Singapore.

Larger rival UBS rose 0.95 sfr or 1.4 pct to 70.05, while Credit Suisse added 1.25 sfr or 1.5 pct to 85.35.

Dealers said banking stocks across Europe were boosted by merger speculations involving ABN-Amro and Barclays sparking further takeover fantasies across the banking sector.

Focus this morning was on Swatch, up 7.75 sfr or 2.6 pct at 310.75 as the market's second best performer, after the Swiss watch maker reported a better than expected full year net profit and issued a strong outlook for 2007.

An increase in dividend per bearer share, to 3.50 sfr from 2.50 sfr, and dividend per registered share, to 0.70 sfr from 0.50 sfr, as well as a fresh 400 mln sfr share buy-back programme, are further boosting the stock dealers said.

Among the market's heavyweights, Nestle rose 2.00 sfr to 466.50, while Roche inched 1.00 sfr higher to 212.60.

Peer Novartis was the market's worst performer, dropping 0.20 sfr to 212.60.

Other underperformers included Adecco, trading flat at 76.35 sfr, Givaudan, up 3 sfr at 1,082 and Lonza, up 0.30 sfr at 100.

Meanwhile, SGS traded 10 sfr higher at 1,408, after announcing that it will launch a share buyback programme of up to 250 mln sfr on March 22, which is expected to last until Dec 31, 2009.

Outside the SMI, focus was on SIG, trading flat at 431.75 sfr, after New Zealand's Rank Group Holdings said it had acquired further shares in Switzerland's SIG Holding, lifting its ownership interest to 33.32 pct.

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