Swiss shares higher in afternoon trade tracking US futures; Swatch up

Swiss shares higher in afternoon trade tracking US futures; Swatch up

	Published : Mon, 19 Mar 2007 14:06 By : Agencies Print this Story

ZURICH (AFX) - Share prices continued higher in afternoon trade recovering some of last week's losses, as US futures point to gains in early Wall Street trade, dealers said.

At 1.30 pm, the Swiss Market Index was up 75.04 points at 8,792.67, and the Swiss Performance Index 61.08 points higher at 7,024.03.

The euro rose against the Swiss franc to 1.6120 sfr as did the US dollar to 1.2126 sfr.

'The SMI opened higher tracking US futures, and supported by strong banking stocks and gains in Swatch following expectation-beating full year results further boosting the index,' a local trader said.

The focus this afternoon was on Swatch, up 7.75 sfr or 2.3 pct at 310.75, making it the market's top 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 the dividend per bearer share to 3.50 sfr from 2.50 sfr and per registered share to 0.70 sfr from 0.50 sfr, as well as a fresh 400 mln sfr share buy-back programme, are also boosting the stock, dealers said.

Meanwhile, peer Richemont had risen 1.15 sfr or 1.8 pct to 66.80.

Banking stocks outperformed the market boosted by merger speculations involving ABN-Amro and Barclays sparking further takeover fantasies across the banking sector, with UBS climbing 1.25 sfr or 1.8 pct to 70.35, and Credit Suisse adding 1.45 sfr or 1.7 pct to 85.55.

Julius Baer rose 3.60 sfr or 2.3 pct to 159.50 after the Swiss banking group said the Monetary Authority of Singapore has granted approval in principle for it to establish a wholesale bank branch in Singapore.

The market's heavyweights were underperforming, with Novartis shedding 0.30 sfr to 68.60 and Roche inching 1 sfr higher to 212.70.

Nestle had added 2.25 sfr or 0.48 pct to 466.75.

Meanwhile, SGS was up 19 sfr or 1.4 pct to 1,417, 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, the focus was on SIG, which was trading 0.25 sfr higher at 432, after New Zealand's Rank Group Holdings said it had bought more share in in, lifting its stake to 33.32 pct.

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