Swiss Market Recovers After Sharp Setback, Ends Modestly Higher

(RTTNews) - The Switzerland stock market ended modestly higher on Monday, recovering fairly well after an early setback.

Investors largely made cautious moves, digesting the developments in the banking sector.

The benchmark SMI, which tumbled to 10,395.33 in early trades, ended the session with a gain of 30.09 points or 0.28% at 10,643.64, after hitting a high of 10,689.76.

The government-backed acquisition of Credit Suisse by UBS Group, and the Federal Reserve's announcement that it has joined with other central banks to take coordinated action to enhance the provision of liquidity via the standing U.S. dollar liquidity swap line arrangements helped lift investor sentiment.

On Sunday, UBS agreed to take over the Credit Suisse in an all-share deal worth $3.25 billion under pressure from the Swiss authorities.

Credit Suisse, a 167-year old bank and the second largest in Switzerland, had been facing issues due to scandals, irregularities and management troubles for a long time.

Shares of Credit Suisse plunged nearly 56%, while UBS Group gained about 1.3%, recovering after an early setback.

Zurich Insurance Group and Richemont, both gained nearly 2.5%. Partners Group climbed about 2.2%, while Givaudan surged nearly 2%.

Holcim, Swiss Re, ABB, Swiss Life Holding, Swisscom and Geberit gained 1 to 1.7%.

In the Mid Price Index, Julius Baer soared 8.25%. Tecan Group and Swiss Prime Site gained 2.8% and 2.6%, respectively.

Schindler Ps, Galenica Sante, Flughafen Zurich, Swatch Group, PSP Swiss Property, Schindler Holding, Ems Chemie Holding and Georg Fischer gained 1.3 to 2%.

AMS, Straumann Holding, Temenos Group and SIG Combiloc ended with sharp to moderate losses.