The Swiss Stock Market Dipped After Banks Underperform
BRUSSELS (dpa-AFX) - The Swiss stock market was little changed at the start of the new trading week, but finished the day with a small loss. After a weak start, the market pared its early losses, but remained locked in a trading range in negative territory for the rest of the day. Bank stocks were under pressure due to news out of Deutsche Bank, but gains among the defensive heavyweights helped to balance out the losses.
Traders were concerned over global trade, after the G20 struck a protectionists tone in its statement concluding last weekend's meeting. Investors were also in a cautious mood ahead of tonight's Presidential debate in France.
The Swiss Market Index decreased by 0.04 percent Monday and finished at 8,695.04. The Swiss Leader Index dropped 0.15 percent, but the Swiss Performance Index rose 0.03 percent.
UBS declined 0.9 percent and Credit Suisse weakened by 1.0 percent. UBS is facing a trial in France over a tax case. Banks were also under pressure after German competitor Deutsche Bank fixed the total proceeds from its capital increase against cash contributions at 8.0 billion euros.
Galenica dropped 2.8 percent. Kepler Cheuvreux lowered its price target on the stock and confirmed its "Reduce" rating.
Cyclical stocks also turned in a weak performance Monday. Kuehne + Nagel surrendered 1.1 percent, Adecco fell 1.0 percent and Dufry lost 0.8 percent. Shares of Schindler also decreased 1.0 percent after they began trading on an ex-dividend basis.
Aryzta surged 5.1 percent. The stock regained some of the ground it lost last week.
Among the index heavyweights, Novartis and Nestlé gained 0.1 percent and 0.3 percent respectively. Meanwhile, Roche finished with a loss of 0.1 percent.
Copyright RTT News/dpa-AFX