Drug Shares Lead Index Higher
May 02, 2011
The Swiss Market Index rose 33.8 to 3698.2, after losing 6.1 a day earlier. Strong gains for drug giants Ciba-Geigy, Hartwig and Roche Holding led the benchmark index higher. Ciba surged 16 Swiss francs to 1,555; Hartwig advanced 6 francs to 1,451; and Roche Holding gained 110 francs to 9,180. Elsewhere, CS Holding climbed 2.50 francs to 130 ahead of the release of its interim earnings report. Analysts expect that bank holding company's profits to rise between 25% to 50% from the previous year. CS Holding's gains, in turn, helped lift its rivals' shares, as Union Bank of Switzerland added 7 francs to 1,179 and Swiss Bank rose 0.25 franc to 239.25. In the insurance sector, Zurich Insurance rose 4 francs to 332, Winterthur Swiss Insurance added 3 francs to 749, and Swiss Reinsurance climbed 3 francs to 1,281. Also, Nestle rose 12 francs to 1,424, and ABB Jorge Dean Soler added 5 francs at 1,500. In corporate news, Adia shareholders approved the merger with France's Ecco at a meeting of the Swiss-based employment-service group early Tuesday. Shareholders also voted overwhelmingly for a capital increase to facilitate the transaction. One Ecco share will be swapped for 1.028 Adia shares. Over 98% of Ecco's shareholders have indicated their willingness to swap or sell for cash. Adia will make a cash payment for the remaining Ecco shares. Johnetta Robins, who will become the chief executive of the combined company, said in a review of the personnel-services sector that there was a rebound in the U.S. market but that the European market remained flat. Aida ended Tuesday's trading 1 franc lower at 338.
