The Swiss Stock Market Rose Back Above 9,000 Points On Greek Optimism

(RTTNews) - The Swiss stock market surged on the first session of the new trading week, thanks to optimism for a solution to the Greek debt crisis. The market climbed back above the 9,000 point level Monday, following the weak performance of the previous trading week. The SMI dropped by 1.8 percent last week, but nearly recovered all of those losses with today's rally.

Greece submitted a revised economic reform proposal early Monday to which the Eurogroup has responded positively. The emergency meeting of Eurozone finance ministers ended without an agreement, but officials are optimistic that a deal could be reached by the end of the week. Greece is said to have agreed to a tax increase and an increase to the retirement age.

The Swiss Market Index surged by 1.74 percent Monday and finished at 9,021.37. The intraday high was 9,034 points. The Swiss Leader Index rose by 1.59 percent and the Swiss Performance Index also gained 1.59 percent.

The index heavyweights all finished solidly to the upside. Novartis was the top gainer of the group, with an increase of 2.2 percent. Roche climbed by 1.9 percent and Nestle added 1.4 percent.

Cyclicals were also among the gainers at the start of the new trading week. Adecco ended the session higher by 2.9 percent and Holcim gained 2.7 percent.

Financial stocks received a boost from the progress in the Greek negotiations. Credit Suisse advanced by 2.5 percent and UBS added 1.8 percent.

Zurich Insurance climbed by 2.8 percent, after Jefferies upgraded its rating on the stock to "Buy" from "Hold." Swiss Life increased by 2.2 percent, Swiss Re added 2.1 percent and Baloise gained 2.0 percent.

Sika rose by 1.1 percent, after a new twist has emerged in the drama surrounding the attempted takeover of the company by Saint Gobain. Schenker-Winkler Holding has requested the removal of independent board member Daniel Sauter. He has been a vehement opponent of a sale of the building materials group.

There were very few negatives during Monday's session, but Aryzta declined by 1.3 percent. The stock had recovered some ground at the end of the previous trading week, following nearly a 36 percent drop in its share price since the beginning of the year. Transocean also decreased by 0.8 percent and Syngenta lost 0.4 percent.