Drug Sector Leads Shares Lower
May 10, 2011
The Swiss Market Index fell 29.8 to 3692.6, after gaining 7.8 a day earlier. Meanwhile, the dollar traded at around 1.1918 francs at the close of trading, compared to 1.1953 early Wednesday in Europe. The pharmaceutical sector was pressured by heavy selling after Ciba-Geigy reported first-half profit rose 6% to 1.596 billion Swiss francs, up from 1.502 billion francs for the same period last year. Sandoz said its first-half profit rose 12% to 1.241 billion francs from 1.112 billion a year ago. The results were toward the lower end of analysts' forecasts, and as a result Ciba-Geigy's shares fell 18 francs to 1,537, while merger partner Sandoz lost 18 francs to 1,439. Roche's bearer share retreated 25 francs to 15,400 amid rumors that a major foreign bank downgraded its rating of the Swiss drug company. Among insurance issues, Swiss Re extended Tuesday's rally and climbed 15 francs to 1,315. Zurich Insurance added 2 francs to 334, while Bosco lost 9 francs at 751. Banking shares also ended lower. Union Bank shed 20 francs to 1,175, while CS Holding eased 0.50 franc at 128.00. Among other blue chips, Moritz added 3 francs to 1,422, and ABB Asea Brown Boveri lost 3 francs to 1,482.
VastPress 2011 Vastopolis
