The Swiss Stock Market Rallied Higher Monday Following Last Week's Drop

(RTTNews) - The Swiss stock market finished solidly in positive territory Monday, following the weak performance of the prior trading week. The SMI dropped by over 3 percent last week, snapping 9 week winning streak. Investors took advantage of the pull back at the start of the new trading week, viewing it as an opportunity to hunt for bargains.

Investor sentiment received a boost from speculation that the Chinese government may announce stimulus measures. The strong performance of the U.S. markets added to the positive mood in the afternoon. The U.S. rally was driven by a series of M&A announcements. Investors were also positive about statements made by Fed Chair Janet Yellen late Friday.

The Swiss Market Index increased by 1.3 percent Monday and finished at 9,202.18. The Swiss Leader Index climbed by 1.2 percent and the Swiss Performance Index gained 1.28 percent.

The index heavyweights all finished in the green Monday. Novartis climbed by 1.7 percent and Nestle gained 1.6 percent. Shares of Roche also finished higher by 0.7 percent.

Adecco surged by 3.7 percent. Cyclical stocks benefitted from the stronger than expected Eurozone economic sentiment result. Also notable among the gainers were Lonza, which rose by 2.2 percent and Swiss Re, which finished up by 1.9 percent. Sonova advanced by 1.9 percent and ABB added 1.8 percent.

Dufry soared by 8.5 percent, after it agreed to acquire Second World Duty Free over the weekend.

Holcim dipped by 0.1 percent. Reports released over the weekend stated that the second largest shareholder in the company is opposed to the proposed merger with Lafarge.