The Swiss Stock Market Bounced Back In Broad Recovery

(RTTNews) - The Swiss stock market staged a broad market rally Tuesday, as it attempts to recover from the sharp losses of the past 2 sessions. The market got off to a positive start and extended its gains in the afternoon, rising above the 7,800 point level intraday. The strong performance of index heavyweight Nestle gave the market a boost.

Traders exited safe haven areas and swooped in to snap up stocks at bargain prices. The unexpected U.K. referendum result in favor of an exit from the European Union had driven equities sharply lower yesterday and at the end of the previous week. The uncertainty that Brexit has caused remains and markets are likely to remain volatile until investors receive some clarity on the matter.

The Swiss Market Index increased 2.36 percent Tuesday and finished at 7,773.80. The SMI reached an intraday high of 7,815 points. The Swiss Leader Index climbed 2.05 percent and the Swiss Performance Index rose 2.36 percent.

Shares of Nestle were in focus, after the food giant named Ulf Mark Schneider as its new chief executive. Mr. Schneider was most recently CEO of German healthcare company Fresenius. Nestle ended the session with a gain of 3.3 percent.

The pharma heavyweights also turned in a solid performance. Roche climbed 2.2 percent and Novartis rose 2.8 percent. Galenica advanced 3.8 percent and Sonova added 3.4 percent. Zurich Insurance was another notable gainer, finishing higher by 3.0 percent.

The luxury goods companies also finished sharply higher, after being hit hard in the aftermath of the U.K. referendum. Swatch jumped 4.5 percent and Richemont added 4.4 percent. Cement company LafargeHolcim leaped 3.6 percent after it was upgraded to "Buy" at Goldman Sachs.

The financial stocks have been under intense pressure of late and failed to take part in today's rally. Credit Suisse dipped 0.1 percent and UBS dropped 2.0 percent.

In the broad market, Valora surged 8.9 percent. Baader Helvea issued a "Buy" recommendation on the stock.

Temenos fell 1.0 percent, after Goldman Sachs downgraded its rating on the stock to "Sell."