By
Reuters
Published
Jan 9, 2011
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Swatch Group down on strong franc

By
Reuters
Published
Jan 9, 2011

Shares in watchmaker Swatch Group fall more than 3 percent, lagging a 0.4 percent rise in the European sector index, as investors take profits and concerns about the impact of the strong Swiss franc weigh.

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"It is the currency issue and probably also a fair bit of profit-taking," Kepler Capital Markets analyst Jon Cox says, adding that Swatch Group has strong pricing power for its high-end timepieces but may face tough competition for lower-priced models.

Shares in rival luxury group Richemont fall 0.6 percent.

Swatch Group Chief Executive Nick Hayek has repeatedly warned of the far-reaching consequences a soaring Swiss franc may have for Switzerland but confirmed the watchmaker was aiming for another record year in 2011.

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