The Swiss Stock Market Climbed Despite Nestle Weakness

(RTTNews) - The Swiss stock market ended Friday's session in the green, despite weakness in shares of index heavyweight Nestle. Strength in pharmaceuticals and financial stocks helped to offset the weakness in Nestle. The market also wrapped up the trading week with an overall increase.

The market got off to a solid start, following the rally in the United States yesterday and the gains posted in Asia. The market pulled back from its intraday high before noon, before leveling off and holding its ground. Friday's gains were fueled by investor hopes that the U.S. Federal Reserve will need to hold off on raising interest rates until next year.

The Swiss Market Index climbed 0.72 percent Friday and finished at 8,715.73. The SMI finished the trading week with an overall increase of 0.4 percent. The Swiss Leader Index rose 0.86 percent Friday and the Swiss Performance Index gained 0.69 percent.

Nestlé dropped 1.9 percent Friday. The food giant reported lower net sales in its nine-month period, impacted by the withdrawal of Maggi noodles in India and slower than expected recovery in China. Nestle also cut its organic growth target.

The luxury goods companies were under pressure again Friday. The stocks dropped yesterday on concerns over China. Swatch decreased 3.4 percent and Richemont surrendered 1.8 percent.

ABB dropped 1.6 percent and Schindler weakened by 0.6 percent. Both companies will provide financial results in the coming week.

The pharma heavyweights turned in a solid performance at the end of the trading week. Roche gained 2.3 percent and Novartis added 2.0 percent.

The big banks also logged impressive gains. UBS surged 3.1 percent and Credit Suisse advanced 2.6 percent.

Actelion increased 4.1 percent and Lonza climbed 3.6 percent. Actelion will present nine-month figures on Tuesday.

Basilea surged 7.7 percent, after the European Commission approved the antifungal isavuconazole.

Zurich Airport rose 3.5 percent, after Commerzbank upgraded its rating on the stock to "Buy" from "Reduce."