Swiss Market Ends Weak After SNB Hikes Rates

(RTTNews) - Switzerland stock market ended on a weak note on Thursday as investors digested Swiss National Bank's interest rate decision.

Investors also reacted to interest rate hikes by the Fed and the Bank of England.

The benchmark SMI, which dropped to 10,653.96 around mid morning, ended the day with a loss of 63.74 points or 0.59% at 10,718.54.

UBS Group drifted down 4.3%. Credit Suisse ended 3.15% down.

Swiss Life Holding lost 4.29%. Holcim and Swiss Re ended lower by 1.84% and 1.47%, respectively. Roche Holding shed 1%.

Sonova climbed more than 3%. Givaudan gained 1.34%, while Richemont and Partners Group ended higher by 0.64% and 0.58%, respectively.

In the Mid Price Index, Zur Rose tumbled 13.5%. Schindler Ps lost 2.46% and Swatch Group ended 2.02% down, while Schindler Holding lost nearly 2%.

SIG Combibloc and Julius Baer both gained more than 2.5%. VAT Group advanced 2%, while Straumann Holding, Bachem Holding and PSP Swiss Property gained 1.18 to 1.36%.

Despite recent turblence in the banking industry, the SNB raised its policy rate by 0.5 percentage points to 1.50%. The outcome of the meeting was in line with expectations.

Further, the bank said it cannot be ruled out that additional policy rate hikes will be necessary to ensure price stability over the medium term.

The latest move was the fourth consecutive hike. Previously, the rate was lifted by 50 basis points in December and 75 basis points in September, which took the policy rate to the positive zone.

The SNB said it is willing to be active in the foreign exchange market as necessary in order to provide appropriate monetary conditions.

Regarding the events surrounding Credit Suisse, the SNB said the measures taken together by the government, financial regulator and the central bank itself put a halt to the crisis.