The Swiss stock market ended Wednesday's session in the green, recouping some of the massive losses it endured yesterday. Following the heavy losses the market has experienced in recent days, a countermove was expected. The market has fallen more than 12 percent since the beginning of 2016.
While today's rebound was welcomed, many are skeptical that this is a sustainable development. Since the start of the year, the beginning of each recovery has then resulted in an even larger sell-off. Investors remain concerned that nothing has changed in the market environment that could trigger a turnaround. Concerns over China and the potential for a new banking crisis in Europe has investors on edge.
The Swiss Market Index increased 1.96 percent Wednesday and finished at 7,731.93. The SMI hit an intraday low of 7,582 points and a high of 7,800 points. The Swiss Leader Index climbed 2.3 percent and the Swiss Performance Index rose 1.91 percent.
Shares of LafargeHolcim rose 5.4 percent Wednesday, after dropping around 13 percent over the last 2 trading sessions. The sharp pullback occurred after Chairman Wolfgang Reitzle vacated his position after only a year.
Bank stocks were among the top gainers today, following the sharp losses of recent days. UBS increased 5.4 percent, Julius Baer gained 4.7 percent and Credit Suisse added 3.3 percent.
Insurance stocks were also among the gainers. Zurich Insurance climbed 3.1 percent and Swiss Re rose 2.4 percent. Swiss Life increased 2.2 percent and Baloise finished higher by 0.9 percent.
Actelion gained 4.1 percent. The company reported better than expected results yesterday and was one of the few positives of Tuesday's session, with an increase of 1.1 percent.
The index heavyweights all finished in the green Wednesday. Novartis increased 2.1 percent and Roche added 1.5 percent. Shares of Nestlé also advanced 1.6 percent.
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