Swiss stocks sink for second day after SNB's surprise move

viernes 16 de enero de 2015 10:46 GYT

* FTSEurofirst 300 slightly up, trading choppy

* Swiss SMI index down 4.3 pct, hits 13-month low

* Analysts slash profit forecasts for Swiss firms

* 85 pct of sales for Swiss firms coming from abroad

By Blaise Robinson and Francesco Canepa

PARIS, Jan 16 (Reuters) - Swiss stocks sank on Friday, extending the sell-off sparked by the Swiss National Bank's surprise decision to remove a ceiling on the Swiss franc that sent the currency soaring.

Watchmakers Swatch and Richemont - considered the most vulnerable to a higher franc because their products are largely produced in Switzerland but sold abroad - were down 6.2 percent and 6.6 percent respectively, adding to losses on Thursday.

Financial markets were shocked on Thursday by the SNB's surprise move to scrap a three-year-old cap on the value of the franc. A wave of profit warnings from Swiss companies is now expected, and investment banks have started to slash their earnings forecasts for several companies.

"The stronger franc will be a drag on earnings for Swiss multinationals," said Martin Moeller, the head of equities at Geneva-based Union Bancaire Privee.   Continuación...