The Swiss Stock Market Continued Its Comeback

(RTTNews) - The Swiss stock market ended Wednesday's session with strong gains, extending yesterday's recovery rally. The market is approaching the 8,000 point level, which it sank below last week after the U.K. decision to vacate the European Union. Financials and cyclicals were in demand Wednesday, while the defensive heavyweights also provided support.

The initial shock of the U.K. referendum result continues to wear off. There was a notable decline in the volatility index today. However, the mood remains one of caution as it remains unclear when the U.K. exit will take place and how smoothly that process will go.

The Swiss Market Index increased 2.64 percent Wednesday and finished at 7,978.96. The Swiss Leader Index climbed 2.71 percent and the Swiss Performance Index added 2.55 percent.

Insurance stocks turned in a strong performance Wednesday. Zurich Insurance jumped 4.9 percent and Swiss Re gained 3.5 percent. The banks were also among the gainers. UBS increased 3.7 percent and Julius Baer rose 2.0 percent. Shares of Credit Suisse also finished higher by 1.0 percent.

LafargeHolcim leaped 4.1 percent, while Sonova and Givaudan both climbed 3.9 percent each. Givaudan announced a new long term collaboration with U.S. biotech Amyris.

The index heavyweights all finished solidly in the green. Roche jumped 3.3 percent and Novartis rose 3.0 percent. Shares of Nestlé also closed up 1.8 percent.

Swatch slipped 0.5 percent, after HSBC downgraded the stock to a "Reduce." Meanwhile, Richemont rose by 1.3 percent.

Syngenta gained 1.6 percent after U.S. competitor Monsanto reported earnings for the third quarter that declined compared to the same period last year. The company provided no formal update on the Bayer proposal to acquire Monsanto.

Dufry suffered some initial weakness after the terrorist attack in Istanbul, but ended the session with an increase of 1.9 percent.

In the broad market, GAM surged 12 percent after the acquisition of British Cantab Capital Partners.