The Swiss Stock Market Jumped Despite Early Weakness

(RTTNews) - The Swiss stock market ended Wednesday's session with a strong gain, despite the initial drop that was sparked by the surprise victory by Donald Trump in the U.S. presidential election. The strong performance of the pharmaceutical heavyweights helped to propel the market higher.

Investors initially reacted negatively to the news of Trump's victory. Futures markets in the U.S. took a hard hit overnight, with the Dow Futures sinking by over 800 points at their lowest level. However, the U.S. markets managed to recover nearly all of their initial losses before the opening on Wall Street.

The Swiss Market Index increased 1.99 percent Wednesday and finished at 7,897.84. The SMI reached an intraday low of 7,699.14. The Swiss Leader Index climbed 1.72 percent and the Swiss Performance Index added 1.70 percent.

Pharmaceutical companies were among the biggest beneficiaries of Trump's win. Traders believed a Clinton presidency would have meant further price regulation for the industry. Index heavyweight Roche surged 5 percent and Novartis jumped 4.4 percent. Actelion advanced 5.7 percent, Galenica gained 3.6 percent and Sonova added 1.8 percent.

In the broad market, Santhera surged 13.8 percent. BB Biotech leaped 12.6 percent and Basilea rose 4.5 percent.

Cyclical stocks also turned in a solid performance Wednesday. LafargeHolcim jumped 3.8 percent, Schindler increased 2.3 percent and ABB added 2.2 percent.

Financial stocks were also among the gainers. Credit Suisse climbed 3.6 percent, UBS rose 1.6 percent and Julius Baer gained 3.1 percent. Baloise increased 1 percent and Swiss Life advanced 1.2 percent.