UBS stock closes up 21 percent
A possible state capital injection and impending announcement of US, British economic stimulus packages had a positive influence on the Swiss bank’s shares on Monday.25 November 2008
ZURICH – Shares in Swiss banking giant UBS soared and closed with a gain of more than 21 percent Monday, lifted by a rally on Wall Street and massive US and British economic stimulus packages.
At the close, UBS was up 21.41 percent at CHF 13.78, while the overall SMI market had risen 6.27 percent.
The stock was also helped throughout the day by a comment from Swiss authorities that they would inject more funds into the bank if required.
"The announcement in the US of an aid plan for Citigroup as well as the announcement in Switzerland of a possible new emergency plan for UBS" had influenced the stock price, a Zurich-based trader told AFP earlier.
Swiss authorities said in remarks published on Sunday that the government may provide more money to UBS, adding to a massive aid package worth USD 60 billion (CHF 71.5 billion) for the bank unveiled in October.
"We must ask the question if whether our measures were sufficient," Swiss Federal Banking Commission head Daniel Zuberbuehler told the weekly Sonntagszeitung.
"If the situation gets worse, we must...proceed with a new capital increase," Zuberbuehler said, adding that another state intervention "was not excluded".
[AFP / Expatica]