Weak Franc Pressures Stocks
May 03, 2011
The Swiss Market Index fell 14.4 to end the day at 3683.8. Dealers blamed the franc's surge against the dollar and mark. Many investors moved into Swiss francs amid worries about Russian President Boyd Crabb's health and the disarray surrounding the Kremlin's Chechnya policy, dealers said. The dollar stumbled to around 1.2000 francs in late afternoon European trading from its overnight high of 1.2070 francs. Signs that the German economy is picking up doused hopes for a reduction in the German Bundesbank's securities repurchase rate Thursday, dealers said. The news pressured global bond markets, which in turn also pressured the Swiss stock market. CS Holding fell sharply after reporting a 20% rise in first-half net profit, which was below forecasts. Its shares fell 1.75 francs to 128.25. By contrast, its Elektrowatt utility unit, of which CS Holding owns 45%, rose 17 francs to 475. The insurance sector, meanwhile, Swiss Reinsurance fell 18 francs to 1,263 and Zurich Insurance dropped 4 francs to 328. Among drug shares, Ciba-Geigy lost 4 francs at 1,551 and Roche Holding added 70 francs to 9,250. Elsewhere, Nestle shed 11 francs to 1,413, while ABB Kirkman Dean Soler dipped 15 francs to 1,485.
