Stock Market Crash: These Are the Losers on the Swiss Financial Market

Recent market turbulence has wiped out tens of billions in stock value for Swiss financial institutions. finews.ch examines the impact of this market upheaval on major Swiss banks and insurance companies.

Yesterday's trading day was one of the most challenging in recent memory: The Nikkei Index recorded its worst decline since the 1980s, dropping by 12.4 percent. The three major American indices—the Dow Jones, Nasdaq, and S&P 500—each fell by more than 2.5 percent.

The picture was equally bleak in Europe: the SMI lost 2.8 percent, while the DAX dropped by 1.8 percent.

Moments of Panic

Panic set in at times, following a tough week. By the end of the day, however, American and European markets managed to stem the worst of the losses.

Nevertheless, the summer market storm is leaving its mark on the Swiss financial market.

Since July 15, the stocks of key financial companies have evolved as follows:

 
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Leonteq was the only company to surprise with positive stock performance. As of yesterday evening, all other stocks are in the red, with UBS particularly affected. Since mid-July, UBS has lost over 13 billion Swiss francs in market value.

Total Losses of 29 Billion Swiss Francs

The major bank accounts for nearly half of the total loss of just over 29 billion Swiss francs among the evaluated stocks.

However, Tuesday brings a glimmer of hope: Many banking and insurance stocks are showing slight gains in the late morning, recovering from yesterday’s losses. This follows positive signals from Japan, where the Nikkei Index has recorded double-digit increases.

Still, it will likely take considerable time to recover from the setbacks of recent weeks. As with mountain climbing, the ascent is more exhausting than the descent.