The Swiss Stock Market Fell Further As "Brexit" Concerns Worsen

(RTTNews) - The Swiss stock market ended Tuesday's session with a sharp decrease, due to growing anxiety over a potential "Brexit." Concerns over the outcome of the U.K. referendum has caused the Swiss market to drop by around 7 percent since the middle of last week. Recent polls have shown the issue to be too close to call, as next week's vote draws closer.

As investors deal with increased uncertainty, they have flocked to safe havens like German government bonds. Meanwhile, financial and cyclical stocks remain under intense pressure. The volatility index has reached levels nearly on par with those last seen in February when the financial markets were in crisis mode.

The Swiss Market Index decreased 1.84 percent Tuesday and finished at 7,638.77. The Swiss Leader Index dropped 1.91 percent and the Swiss Performance Index lost 1.8 percent.

Credit Suisse remained under heavy pressure, with a loss of 2.6 percent. The stock dropped by over 7 percent last week. Keefe, Bruyette & Woods lowered its rating on the stock to "Market Perform" from "Buy."

Julius Baer weakened by 3.2 percent, while Swiss Life and UBS both fell by 2.2 percent.

The cyclical stocks also turned in a weak performance. Swatch decreased 3.0 percent and Richemont forfeited 2.7 percent. LafargeHolcim decreased 2.6 percent and Adecco lost 2.4 percent.

The index heavyweights all finished in the red Tuesday. Novartis declined 2.1 percent and Roche fell 2.0 percent. Shares of Nestle also finished lower by 1.3 percent.

In the broad market, GAM Holding sank 18 percent after warning its profit would probably fall by half in first-half, mainly due to lower performance fees.

Daetwyler dropped 3.9 percent after it agreed to acquire Premier Farnell for 165 pence in cash per share.