The Swiss Stock Market Finished Higher Thanks To Late Push From Heavyweights

(RTTNews) - The Swiss stock market got off to a positive start Monday, but quickly slipped into negative territory and remained there for most of the day. However, the market managed to climb back into positive territory in late trade, thanks to the gains among the index heavyweights.

Following the rally of the past few weeks, the market has shown signs of running out of steam. Investors have begun to turn more cautious in anticipation of profit taking. Traders are also preparing for the start of the U.S. earnings reporting season.

The Swiss Market Index increased by 0.09 percent Monday and finished at 8,424.86. The Swiss Performance Index rose 0.10 percent, but the Swiss Leader Index dipped 0.02 percent.

The bank stocks turned in a weak performance Monday. Julius Baer dropped 1.4 percent and UBS fell 1.2 percent. Meanwhile, shares of Credit Suisse finished higher by 0.1 percent. UBS and Morgan Stanley are planning to increase investment-banking operations in mainland China, in a sign of commitment toward developing more business in the country, the Wall Street Journal reported, citing people familiar with the matter.

The insurance stocks also struggled at the start of the new trading week. Bâloise and Swiss Re lost 0.8 percent each, Swiss Life fell 0.4 percent and Zurich Insurance slipped 0.3 percent.

LafargeHolcim dropped 0.9 percent and Aryzta weakened by 0.8 percent. ABB surrendered 0.4 percent and Actelion forfeited 0.3 percent.

The index heavyweights all concluded the session with modest gains. Novartis and Roche increased by 0.3 percent each, while Nestlé rose 0.1 percent. The U.S. FDA has granted Roche priority review for Tecentriq in patients with metastatic urothelial carcinoma.

Galenica advanced 2.8 percent after Sprint announced that it has divested its stake in the company.

The luxury goods companies also fared well at the start of the new trading week. Swatch climbed 2.8 percent and Richemont gained 1.2 percent.

Syngenta increased 1.5 percent, Dufry rose 0.8 percent and SGS added 0.6 percent.

In the broad market, Meyer Burger surged 9.3 percent after a "Buy" recommendation from Citigroup.