Shares Rise on Blue Chip Gains
May 04, 2011
The Swiss Market Index rose 29.2 to 3713.0 Roche led the drug sector with a 150-franc advance to 9400 francs. Traders reported broad-based buying amid rumors the company is on the prowl for an acquisition. Elsewhere in the sector, merger partners Ciba and Sandoz scored modest gains. Union Bank gained 15 francs to 1189 francs, leading its sector higher. Traders said the market is hoping the bank will announce a restructuring program like CS Holding and Swiss Bank Corp., both of which showed small increases in their share prices Thursday. Swiss Re's posted a meager 1-franc advance to 1,264 francs, but Winterthur Insurance gained 9 francs to 751 francs. Among other blue chips, Moritz added 11 francs to 1,424 francs, while ABB gained 9 francs to 1,494 francs. The Deutsche Bundesbank's repo rate cut in the afternoon enhanced an already improving market undertone. Later in the session, the Swiss National Bank said it added liquidity to the money market In addition, the dollar surged nearly one Swiss centime to around 1.2100 francs.
