ZURICH - SHARES in Swiss banking giant UBS soared 10.22 per cent in early trading on Monday after the Swiss government raised the possibility of a further capital injection, barely a month after it offered a massive aid package for the bank.

News of a state rescue plan for American bank Citigroup further lifted the stock, traders added.

UBS shares were showing as gains of 10.13 per cent to 12.50 Swiss francs (S$15.68), outperforming the overall market which was gaining 1.93 per cent.

'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.

Swiss authorities said in remarks published on Sunday that the government may inject more money into UBS, adding to a massive aid package worth US$60 billion (S$91.8 billion) for the bank unveiled a month ago.

'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,' Mr Zuberbuehler said, adding that another state intervention 'was not excluded.' -- AFP