Sonova could bump SGS in Swiss SMI

Credit Suisse is likely to remain in the blue-chip Swiss Market Index (SMI) when it is up for a review

in early July, even after the crisis-ridden bank has lost about a third of its value since the last index revision

Its market value is now below that of the SGS testing group, seen as a potential candidate to drop out of the list

of Switzerland’s 20 largest and most liquid listed companies after more than 17 years in the index.

However, Swiss stock exchange SIX selects SMI stocks based equally on market capitalisation

and trading volume and Credit Suisse is at number 10 on its selection list.

“Based on the latest selection list, it also looks to us like SGS will leave the SMI,” said Omar Brem, head of investment research

“However, SGS has outperformed Sonova since the end of March, which is why the second quarter, which is still to come, will be decisive.”