The Swiss Stock Market Extended Weakness As Tensions Over Syria Increase

(RTTNews) - The Swiss stock market ended Tuesday's session with a significant decline, adding to the losses of the prior trading day. The strong gains of the previous trading week have nearly been wiped out in just the first two trading days of the current week.

Investors were rattled by the news that Turkey shot down a Russian jet near the border with Syria. It is unclear at this point what impact this will have on a potential alliance between Russia and the West in the fight against ISIS.

The Swiss Market Index decreased 1.30 percent Tuesday and finished at 8,808.53. The SMI reached an intraday high of 8,895 points and a low of 8,762 points. The Swiss Leader Index fell 1.26 percent and the Swiss Performance Index lost 1.25 percent.

Luxury goods companies were among the weakest performers Tuesday. Concerns over the events in Turkey were partly responsible, as well as concerns over reduced travel in Europe. Richemont dropped 3.1 percent and Swatch fell 2.3 percent.

Galenica weakened by 2.7 percent, despite being one of the best performing stocks yesterday. The stock is one of the favorites to replace Transocean in the SMI. Transocean, which rose 1.3 percent, is planning to delist from the Swiss stock exchange.

Adecco declined 2.6 percent and LafargeHolcim surrendered 2.5 percent. Zurich Insurance also finished lower by 2.1 percent.

The index heavyweights all finished solidly to the downside. Roche dropped 1.8 percent, Nestlé lost 1.3 percent and Novartis fell 1.0 percent.

Shares of the big banks were also under pressure Tuesday. Credit Suisse and Julius Baer both weakened by 1.4 percent each and UBS surrendered 1.3 percent.

Aside from Transocean, Syngenta was also among the positives, with a gain of 1.9 percent. Analysts at Bernstein have turned more optimistic that a takeover or merger will occur. Shares of Aryzta also climbed 0.5 percent.