Swiss stocks gain as Petroplus, Adecco shares advance
Wednesday, 7 July 2010
MILAN, July 6 (Bloomberg): Swiss stocks gained, ending a five- session loss, led by Petroplus Holdings AG and Adecco SA.
Petroplus jumped 4.5 per cent as Europe's largest independent refiner was rated "short-term trading buy" at Credit Suisse Group AG. Adecco rose 2.5 after UBS AG upgraded the stock. Swatch Group AG advanced 2 per cent as Kepler Capital Markets said current prices offer "an attractive entry point." Holcim Ltd. gained 1 per cent as it may use a planned new plant in New Zealand to supply Australia and other Pacific markets.
The benchmark Swiss Market Index rose 35.24, or 0.6 per cent, to 5,977.49 as of 9:29 a.m. in Zurich. The SMI has retreated 14 per cent from this year's high on April 15 amid speculation that Europe's debt crisis may derail the economic recovery and concern that Chinese authorities are cooling the nation's growth. The broader Swiss Performance Index also gained 0.6 per cent Tuesday.
Petroplus surged 4.5 per cent to 15.73 Swiss francs. Credit Suisse suggested investors buy the shares ahead of the company's second-quarter results, due Aug. 5.
"The stock should be the most leveraged play to a recovery in refining margins," the brokerage said in a note. Credit Suisse lifted its price estimate to 21.5 francs from 20 francs.
Adecco rose 2.5 per cent to 50.8 francs. UBS lifted its recommendation on the world's largest supplier of temporary workers to "neutral" from "sell."
Swatch Group advanced 2 per cent to 302.2 francs. The maker of Omega and Breguet timepieces agreed to take over Swiss watch movement assembler Tanzarella SA and buy its plant from Credit Suisse.
"Swatch Group has been under pressure in the last few sessions amid concerns about China, its biggest market, the strong franc and in the wake of the death of chairman Nicolas Hayek," Kepler Capital Markets said in a note. "Current weakness creates an attractive entry point."
Petroplus jumped 4.5 per cent as Europe's largest independent refiner was rated "short-term trading buy" at Credit Suisse Group AG. Adecco rose 2.5 after UBS AG upgraded the stock. Swatch Group AG advanced 2 per cent as Kepler Capital Markets said current prices offer "an attractive entry point." Holcim Ltd. gained 1 per cent as it may use a planned new plant in New Zealand to supply Australia and other Pacific markets.
The benchmark Swiss Market Index rose 35.24, or 0.6 per cent, to 5,977.49 as of 9:29 a.m. in Zurich. The SMI has retreated 14 per cent from this year's high on April 15 amid speculation that Europe's debt crisis may derail the economic recovery and concern that Chinese authorities are cooling the nation's growth. The broader Swiss Performance Index also gained 0.6 per cent Tuesday.
Petroplus surged 4.5 per cent to 15.73 Swiss francs. Credit Suisse suggested investors buy the shares ahead of the company's second-quarter results, due Aug. 5.
"The stock should be the most leveraged play to a recovery in refining margins," the brokerage said in a note. Credit Suisse lifted its price estimate to 21.5 francs from 20 francs.
Adecco rose 2.5 per cent to 50.8 francs. UBS lifted its recommendation on the world's largest supplier of temporary workers to "neutral" from "sell."
Swatch Group advanced 2 per cent to 302.2 francs. The maker of Omega and Breguet timepieces agreed to take over Swiss watch movement assembler Tanzarella SA and buy its plant from Credit Suisse.
"Swatch Group has been under pressure in the last few sessions amid concerns about China, its biggest market, the strong franc and in the wake of the death of chairman Nicolas Hayek," Kepler Capital Markets said in a note. "Current weakness creates an attractive entry point."