For the 2nd straight day, Swiss stocks have gone ahead now. It was mainly helped by the fact that Bank of Japan stated that it has taken all necessary steps for reaching the inflation target. Apart from that, a report on US industries brought positivity to the Swiss stock exchange as well.
The benchmark gauge Swiss Market Index advanced by 0.6% and is currently at 7815.28. The total number of shares changing hands was 7.2% less, if compared with the average of the last 30 days. On the other hand, the broader Swiss Performance Index also experienced an increase of 0.6%.
According to the Fund Manager of Sycomore Asset Management, Japan’s new monetary policy is very aggressive and this has played a major role in helping the Swiss stocks to gain. He added that the liquidity that comes to the market will now shift towards the riskier assets. Monetary policy of various Central Banks is something that is playing a pivotal role in driving the stock markets these days.
On the other hand, the European Central Bank announced that it will look for signals in the economic data to identify if inflation can slow down further than the current anticipations. Similar to the 4th April statement of the President Mario Draghi, the bank mentioned that the Governing Council will be monitoring all the incoming information very closely, when it comes to monetary and economic developments. This will help them to assess any impact on price stability outlook.
Among companies, the biggest maker of Swiss timepieces, Swatch went ahead by 2.1% and each share is currently priced at 541.50 Swiss Francs. On the other hand, the owner of the Cartier brand, Richemont experienced an increase of 2.2% to 73.75 Swiss Francs.
The retail partner of Hengdeli Holdings Ltd. went ahead by 11% after Jefferies recommended the investors to hold to the stock in new coverage. While giving its recommendation, Jefferies stated that China and Hong Kong watch and jewelry retailers may experience a rebound in sales, profits and gross margins, after consolidating only in 2012.
The largest maker of fragrances and flavorings, Givaudan SA went ahead by 2.5% and each share is now at 1158 Swiss Francs. Leclanche SA went to its lowest price in last 2 months, as it declined by 4% on today, taking its price to 4.34 Swiss Francs.