The Swiss Stock Market Advanced Further On Strength Of Heavyweights

(RTTNews) - The Swiss stock market ended Tuesday's session with a significant increase, adding to the gains of the previous session. The strong performance of the index heavyweights propelled the market higher.

Trading activity remained on the light side, with the New Year's Day holiday approaching at the end of the week. There was next to no economic data to drive the direction of trading yesterday, but there was a notable increase on Tuesday. U.S. consumer confidence came in stronger than expected and home prices also increased more than anticipated.

The Swiss Market Index increased 1.64 percent Tuesday and finished at 8,883.01. The Swiss Leader Index climbed 1.42 percent and the Swiss Performance index gained 1.56 percent.

With the end of the year approaching, it was expected to see some "window dressing" as funds buy into some of the best annual performers. Shares of Galenica were among the strongest gainers Tuesday, with an increase of 3.6 percent. The company's stock price has nearly doubled since late 2014.

Strong demand for pharmaceutical companies and takeover speculation has driven Galenica higher. In the fourth quarter 2016, the Group will split into a pharmaceutical company and a pharmacy business.

Lonza climbed by 1.4 percent Tuesday. The stock is up 45 percent for the year. Clariant rose 1.4 percent and Swiss Life added 2.6 percent. The stocks are up 14 percent and 15 percent for the year.

The index heavyweights all finished with substantial gains Tuesday. Novartis gained 2.0 percent and Nestlé added 2.1 percent. Roche ended the session higher by 1.6 percent. Novartis climbed on rumors of a possible imminent divestment of its Alcon division.

Financial stocks were also among the positives Tuesday. Credit Suisse increased 1.0 percent and UBS advanced 1.6 percent. Julius Baer also rose 0.9 percent.