Swiss Stocks Rally, Retailer Next Lifts Profit Estimate

Nigel Thomas
03 Jan, 2013
New York City

Alcatel-Lucent gained after Credit Suisse revised higher its views. K+S AG dropped after Chinese company bought fertilizer at a cheaper price from North American manufacturers. Next Plc gained on higher annual profit estimate. Swiss stocks rallied on higher luxury goods sales in Hong Kong.

Alcatel-Lucent soared 10% to 1.15 euros after Credit Suisse upgraded the recommendation to “neutral” from “underperform.”

Compass Group, the caterer to airlines, declined 1.6% after Espirito Santo Investment Bank downgraded the stock rating on valuation concerns. The bank lowered its price target on the stock to 700 pence from the previous target of 750 pence.

K+S AG declined 3.5% to 33.89 after the U.S. and Canada based fertilizer companies cut prices for the latest agreement with a Chinese company.

Potash Corp, Agrium Inc and Mosaic Co said on Monday that they agreed to sell 1 million tons of fertilizer to China based Sinofert Holdings Ltd at a $70 a ton price lower than the sale price in March.

Next Plc gained 2.5% to 3,873 pence in London trading after the UK’s second largest apparel retailer revised higher full-year net income to between 611 million pounds and 625 million pounds.

Trading volume in the stock was nearly double its last three month of daily average volume.

Swiss stocks soared and the benchmark index surged more than 2.5%.

Roche Holding AG soared 3% and Credit Suisse gained more

UBS, the largest Swiss bank gained 4.1% to Sfr14.80. Swatch Group AG gained 6.4% to Sfr490.50 and Richemont soared 5.5% to Sfr75.50.

Rio Tinto Plc declined 0.9% in London trading to 3,658.50 pence and BHP Billiton plc fell 0.4% to 2,199 pence. Mining companies were lower on profit taking.

Wacker Chemie AG surged 5% to 53.39 euros after UBS recommended the German maker of polysilicon to a list of chemical companies favored in Europe.