For 3rd consecutive day, Swiss stocks have advanced, thereby extending its 4-year high. The investors are optimistic about the different companies of the country, which are showing revenue growth. On the other hand, as the major currency of Switzerland, Swiss Franc has experienced a slump; the exporters are expected to post gains.
The benchmark gauge of the country, Swiss Market Index posted a gain of 0.5% and is at 7240.98 currently. In the New Year, the index has seen an increase of 6.2%, mainly helped by the US budget deal. On the other hand, today, the broader Swiss Performance Index surged ahead by 0.4%. The overall share trading volume was 27% higher than the last 30-day average.
According to the Vice President of Mirabuad Securities LLP, John Plassard, the Swiss shares are seeing the boost because of two factors combined. Not only that the companies are performing well, but the foreign exchange effect has also been a prime factor. The Swiss Franc is actually at its weakest value against Euro since December, 2011. Investors are speculating that the debt crisis of Switzerland is easing up and hence, many are considering Swiss Franc to be a safe haven.
Coming to company stocks, the Swatch Group AG went ahead as sales forecast for the company was worth $1.1 billion, only from its brand Harry Winston. Swatch, incidentally, is the biggest maker of Swiss watches in the world and share prices increased by 0.6%. It is currently priced at 516 Swiss Francs per share.
As the reported 2012 earnings increased, both Lindt and Geberit went ahead by 2.5%. Geberit, the renowned maker of sanitary systems and pipes has reported an earnings increase of 3.1% in 2012, to 2.19 billion Swiss Francs. The figures are better than the initial estimated earnings of 2.13 billion Swiss Francs. Lindt, known for its chocolate bunny has gone up to its highest share price since June, 2008. The sales of the company have increased by 7.3% in 2012 and the figures are along the lines of initial estimates. The 2nd biggest reinsurer in the world, Swiss Re also surged ahead by 1.3% with each share being priced at 69.80 Swiss Francs. The company expects that the life insurance premiums will increase by 3% in 2013 globally. This positive sentiment helped Swiss Re to get ahead in the stock exchange.