CS shares gain on Q1 hopes, UBS rally stalls

* Expectations of strong Q1 at CS halt UBS share rally

* UBS stock flat, CS up 2 pct having hit 5-month high

By Catherine Bosley

ZURICH, April 16 (BestGrowthStock) – Credit Suisse Group AG (CS)
(CSGN.VX: ) (CS.N: ) stock rose to its highest in five months in
anticipation of good first-quarter results, helping take the
wind out of a nine-week rally at rival UBS AG (UBSN.VX: )(UBS.N: ).

CS shares were up 2 percent at 57.50 francs by 1304 GMT on
Friday, having hit a peak of 57.70, their highest since
November, while UBS shares were flat having risen earlier this
week after better than expected first-quarter results.

“The good news is naturally out and (UBS shares) developed
better than Credit Suisse,” Georg Kanders of WestLB said, while
one trader noted: “Investors are speculating that Credit Suisse
will post very good quarterly results.”

Sentiment for UBS shares was also knocked by a Swiss media
report saying the bank could face claims for some 3.5 billion
Swiss francs ($3.3 billion) from investors who lost money on UBS

Daniel Fuchs, a Swiss lawyer who has taken up a small
portion of these claims, confirmed to Reuters that claims filed
in Zurich against UBS since the start of 2008 amount to 3.5
billion francs but said there was no guarantee they would go

Watchmaker Swatch Group (UHR.VX: ) said it was claiming 30
million francs it lost through investing with UBS. A UBS
spokesman said the bank would not discuss individual cases.

Despite uncertainties facing UBS, its shares have risen
nearly 38 percent since Feb. 9, when the bank posted a positive
fourth-quarter net profit after four quarters in the red.

Shares in Credit Suisse have risen nearly 27 percent in the
same time. The bank is expected to next week post a net profit
of just below 2 billion francs in the first three months of 2010
according to a Reuters poll. [ID:LDE63F11D]

UBS is struggling to rebuild its once powerful brand after
massive investments in risky U.S. assets forced it to make more
writedowns than any other European bank and accept a government


(Additional reporting by Katie Reid; Editing by David Holmes)
($1=1.054 Swiss Franc)

CS shares gain on Q1 hopes, UBS rally stalls