The Swiss Stock Market Finished Slightly Higher On Bank Strength

(RTTNews) - The Swiss stock market got off to a positive start Thursday, driven by the strong performance of the bank stocks. However, the market pared its early gains in the afternoon, after the pharma stocks began to display some weakness. The volatile opening on Wall Street also contributed to the pullback.

The Swiss Market Index increased 0.39 percent Thursday and finished at 7,928.77. The SMI hit an intraday high of 8,004 points. The Swiss Leader Index climbed 0.86 percent and the Swiss Performance Index added 0.26 percent.

Shares of the big banks were among the top performers of the session. They benefitted from investor hopes that a Donald Trump presidency in the U.S. could mean the end of Dodd-Frank. UBS surged 8.7 percent, Credit Suisse advanced 4.9 percent and Julius Baer added 2.6 percent.

Trump's plans to improve U.S. infrastructure also provided a boost to stocks like cement company LafargeHolcim, which gained 1.3 percent. ABB increased 1.2 percent and Clariant climbed 1.8 percent. The promise of U.S. job creation also provided a boost to personnel manager Adecco, which rose 3.8 percent.

Zurich Insurance Group gained 0.6 percent after its third-quarter profit more than quadrupled. This was the third time in a row that the company exceeded analysts' expectations. Swiss Re also gained 1.1 percent and Swiss Life jumped 3.9 percent.

Index heavyweight Novartis increased 1.2 percent and Roche added 0.4 percent. However, some other healthcare names fared worse. Actelion decreased 2.0 percent and Galenica lost 1.8 percent.

Givaudan sank 5.1 percent after Citigroup downgraded its rating on the stock to "Sell" from "Neutral." Aryzta also slipped 2.3 percent, extending its losses from the previous session.

Index heavyweight Nestlé dropped 2.2 percent, while another defensive stock, Swisscom weakened by 2.7 percent.

Syngenta surrendered 1.4 percent. Investors are concerned what a Trump presidency could mean for the proposed takeover of the company by ChemChina.

In the broad market, Sunrise tumbled 4.9 percent despite reporting slightly better than expected results.