The Swiss Stock Market Suffered Another Massive Loss

(RTTNews) - The Swiss stock market ended Thursday's session with another massive decline. The positive finish on Wednesday has been the only positive session so far this week. The market plunged to its lowest level since June 2013 early this morning, but recovered some ground before the early afternoon. The weak opening of the U.S. markets drove the SMI more firmly into negative territory.

There was no clear cause to today's sharp drop. Concerns about the global economy persist, leaving investors with feelings of uncertainty. Crude oil prices weakened further Thursday and investors also remain concerned about a potential European banking crisis.

The Swiss Market Index decreased 3.04 percent Thursday and finished at 7,496.62. The Swiss Leader Index dropped 3.27 percent and the Swiss Performance Index also fell 2.94 percent.

Bank stocks were among the weakest performers Thursday, after yesterday's recovery proved short-lived. Credit Suisse sank 8.4 percent and UBS dropped 4.6 percent. Julius Baer also finished lower by 4.4 percent.

Cyclical stocks were also under heavy pressure. LafargeHolcim dropped 5.4 percent and Transocean weakened by 5.2 percent. LafargeHolcim has been losing ground for much of the week, after the unexpected departure of its Chairman, while Transocean pulled back due to the drop in crude oil prices. Swatch decreased 4.6 percent and Adecco lost 4.0 percent.

Zurich Insurance ended the session with a loss of 2.7 percent, following the release of its weaker than expected fourth quarter report. The company made no change to its dividend.

The index heavyweights all finished solidly to the downside. Novartis dropped 3.3 percent and Roche surrendered 2.0 percent. Shares of Nestlé also declined 2.8 percent.