The Swiss Stock Market Pulled Back As Nestle Weighed
BRUSSELS (dpa-AFX) - The Swiss stock market ended Thursday's session with a small loss, following the gains of the previous day.
The weak performance of index heavyweight Nestle pressured the overall market. However, the pharma heavyweights provided some support.
The recent rally in global equities stalled out on Thursday. With markets at or approaching record highs, profit taking was to be expected. Investors are hopeful that the tax cuts promised by U.S. President Trump with come to fruition.
The Swiss Market Index decreased by 0.22 percent Thursday and finished at 8,467.52. The Swiss Leader Index dropped 0.27 percent and the Swiss Performance Index lost 0.21 percent.
Nestlé weakened by 1.0 percent. The food giant's fiscal 2016 profit declined to 8.53 billion Swiss francs from 9.07 billion francs last year, mainly due to the impact of a one-off non-cash adjustment to deferred taxes. The company also offered cautious guidance.
Meanwhile, the rest of the index heavyweights finished modestly higher. Novartis and Roche both finished with gains of 0.5 percent.
Clariant fell 0.4 percent after the specialty chemicals manufacturer reported results that were in line with expectations.
UBS weakened by 1.3 percent and Credit Suisse surrendered 1.7 percent. Julius Baer also finished lower by 0.4 percent.
Aryzta and Swatch increased by 1.1 percent each, while Lonza gained 0.9 percent.
Copyright RTT News/dpa-AFX