The Swiss Stock Market Was Dragged Lower By Greek Concerns

(RTTNews) - The Swiss stock market ended the first day of the new trading week in negative territory. Bailout negotiations between Greece and its creditors broke down over the weekend. Greek Prime Minister Alexis Tsipras called a July 5th referendum on the country's bailout on Friday, taking its creditors by surprise.

The size of Monday's sell-off was not as large as feared. There have been statements made by officials that left the door open for further negotiations and the possibility of a deal. Greece is also not a big trading partner of Switzerland.

The Swiss Market Index declined by 1.54 percent Monday and finished at 8,868.39. The SMI was down nearly 3 percent in early trade. The Swiss Leader Index fell by 1.60 percent and the Swiss Performance Index lost 1.50 percent.

Financial stocks were hard hit by Greek concerns Monday. UBS and Credit Suisse by dropped by 2.9 percent, while Julius Baer declined by 0.9 percent. Zurich Insurance forfeited 2.2 percent, Swiss Life lost 2.1 percent and Baloise weakened by 1.9 percent.

Cyclicals stocks were also under pressure. Cement manufacturer Holcim dropped by 2.4 percent, while employment agency Adecco fell by 2.9 percent. Geberit declined by 2.2 percent and Clariant weakened by 1.7 percent.

ABB decreased by 1.3 percent. Barclays added the stock to its EMEA Top Picks list.

The index heavyweights all finished in the red, pressuring the overall market. Roche dropped by 1.9 percent and Novartis surrendered 1.1 percent. Novartis announced that it has agreed to acquire Spinifex Pharmaceuticals for $200 million. Nestle also finished down by 1.2 percent.

There were few upsides at the start of the new trading week. SGS gained 0.7 percent, even after Citigroup lowered its price target on the stock. Transocean climbed by 0.9 percent and Kuehne + Nagel added 0.3 percent.