Swiss Stocks Rise as Zurich Financial, Petroplus Holdings Gain

By Adria Cimino

Aug. 6 (Bloomberg) -- The Swiss Market Index advanced for the first time in three days, led by Zurich Financial Services AG, after the company said it’s confident about achieving mid- term profit goals.

Zurich Financial, Switzerland’s largest insurer, led bank and insurance shares higher. Petroplus Holdings AG, Europe’s biggest independent refiner by capacity, surged 7.6 percent after earnings beat analysts’ projections.

The SMI, a gauge of the biggest and most actively traded Swiss companies, increased 1.2 percent to 5,981.81 at 10:01 a.m. in Zurich, gaining for a second day this week. The broader Swiss Performance Index added 1.1 percent to 5,144.23.

The SMI has climbed 14 percent since July 10 as U.S. companies from Goldman Sachs Group Inc., Johnson & Johnson and Apple Inc. reported earnings that exceeded analysts’ estimates.

Zurich Financial rallied 2.6 percent to 221.5 francs, gaining for a seventh day. The company beat a 16 percent target for business operating profit return on equity in the first half, Chief Financial Officer Dieter Wemmer said on a conference call today. Zurich Financial reported a 29 percent decline in second-quarter profit because of lower general insurance earnings and investment losses.

“The result looks solid, proofing Zurich Financial Services franchise in a challenging market,” Stefan Schuermann, an analyst at Vontobel Holding AG, wrote.

Credit Suisse Group AG, the largest Swiss bank by market value, climbed 2.6 percent to 53.75 francs. UBS AG, the biggest by assets, advanced 2.1 percent to 15.81 francs.

Swiss Reinsurance Co. climbed 2.6 percent to 43.6 francs, gaining for a third day this week. UBS AG raised its recommendation for the world’s second-largest reinsurer to “neutral” from “sell.”

Petroplus surged 7.6 percent to 19.37 francs, for the biggest gain in two months. Petroplus net income declined to $205 million in the second quarter from $638.6 million a year earlier, beating the $161.5 million median estimate of eight analysts surveyed by Bloomberg.

To contact the reporter on this story: Adria Cimino in Paris at acimino1@bloomberg.net.