BRUSSELS (dpa-AFX) - After swinging between gains and losses for much of the session till mid afternoon, the Switzerland stock market ended on a firm note on Thursday.
A positive reaction to the Swiss National Bank's monetary policy statement and the firm trend in global markets after the Federal Reserve cut interest rates by 25 basis points helped as well.
The benchmark SMI ended up 45.62 points, or 0.46%, at 10,064.46, slightly off the day's high of 10,070.64.
On Wednesday, the index ended up 5.02 points, or 0.05%, at 10,018.84.
Credit Suisse gained 1.65%. UBS Group, Richemont, SGS and Sika ended higher by 1.1 to 1.4%. Lonza Group and Zurich Insurance Group gained nearly 1% each.
Swatch Group, Roche Holding, Swiss Re, LafargeHolcim and Swisscom ended modestly higher.
Novartis edged up marginally after Sandoz said on Wednesday it was halting distribution of its versions of the drug commonly known as Zantac in all its markets, after contaminants were found in the heartburn drug.
In the midcap space, GAM Holding, Julius Baer, Temenos Group, Barry Callebaut and VAT Group gained 1 to 1.6%.
The Swiss National Bank decided to leave its key interest rates unchanged on Thursday, but adjusted the basis for calculating negative rate on sight deposits.
The central bank kept its new SNB policy rate and interest on sight deposits at the central bank at -0.75%. The exemption threshold was raised to 25% from 20%.
David Oxley, an economist at Capital Economics, said he suspects that the increase in the threshold limit is in preparation for a future rate cut if the franc continues to appreciate.
The bank repeated that the Swiss franc is highly valued and the situation on the foreign exchange market is still fragile. It reiterated that it is willing to intervene in the foreign exchange market as necessary, after taking into account the currency situation.
Further, the bank forecast economic growth of between 0.5% and 1% for 2019 as a whole, compared to around 1.5% in June.
Inflation is seen at 0.4% this year instead of 0.6%. For 2020, SNB projected 0.2% inflation versus 0.7% estimated previously. The rate is forecast to rise to 0.6% in 2021.
Data released by the Federal Customs Administration today showed Switzerland's exports declined for the second straight month, while imports grew in August.
Exports decreased by real 4.4% month-on-month in August, following a revised 1.2% fall in July. Imports rose 1% in August, after remaining unchanged in the previous month, following revision.
The trade surplus fell to CHF 1.15 billion in August from CHF 2.58 billion in the previous month.
According to the Federation of the Swiss Watch Industry, watch exports rose 1.5% year-on-year in August.
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