PUTIN'S PROMISE SENDS YUKOS STOCK SKYROCKETING

Subscribe
MOSCOW, June 17 (RIA Novosti) - Bulls are guzzling champagne as Yukos stock made an unprecedented zoom.

The Russian stock was cautiously up, morning and early afternoon, in correction moves after the preceding plummeting days. The market broke into seething activity, later on, the Yukos leading the show-as soon as President Vladimir Putin's reassurance reached dealers' ears.

The federal government is to take pains saving the petroleum mammoth from an impending collapse, said the President as he was addressing newsmen in Tashkent today.

The Yukos came 20% up in the Russian Trading System, and 30% on the Moscow Interbank Currency Exchange within half an hour since media outlets carried Mr. Putin's words far and wide. The auctions had to stop before closing time as exchange regulations demand in case of breathtaking ups and downs.

The RTS index came 10.1% up to 587.1 by 6 p.m., closing time, yesterday. Today's Yukos auction was nipped, 5 p.m., Moscow time, having leapt 34.19% up to US$8.32 a share.

The Moscow Interbank Currency Exchange usually closes, 7 p.m. Today's stop came 18.25, Moscow time, after the exchange index rose by 9.33% against yesterday's closing time to 556. Yukos trade was stopped, 17.10, with a 34.93% rise to 255 rubles a share.

President Putin's statement came as an inspiring surprise, says Evgeni Suvorov, Zenith Bank expert. "I think the Yukos will be allowed to pay its fiscal arrears in instalments, if the court verdict on the Taxation Ministry suit is not quashed. Then, the company may sell some of its assets if they are unfrozen."

The ministry is claiming a hundred billion Rubles on disputed Yukos tax arrears.

"The Yukos controversy sent the market down for the previous two weeks. The worst apprehensions came with its bankruptcy prospects-but I think an agreement will be eventually made," says Yegor Krotkov, TrinfiCo expert. He will not be surprised if the market fully recovers. However entangled theYukos affair may be, the present state of things is enough for market improvements unless new threatening statements come, he expects.

"If this night does not bring anything sensational, the exchange will open at today's level or slightly higher," forecasts Krotkov.

Whatever President Putin may be saying, Yukos will hardly come up any higher, holds Roman Andreyev, CentreInvestSecurities analyst. The rates will depend on an upcoming Yukos court verdict. Vague auction developments at the Wholesale Generating Companies will have their say, too, where the Yukos is concerned. US rate prospects are no clearer. "So investors may stay uneasy about the Yukos and the entire stock market," he concluded.

All Russian blue chips with no exception came up on the RTS within the day. The Norilsk Nickel followed the Yukos with 16.16%, and the LUKoil, 11%. The United Russian Power Grid came next with 9.48%. Its securities beat the day's record to account for $19.43 million as total deals made 43.317 million. The LUKoil followed with 9.732 million, with 2.674 million for the troublesome Yukos.

The Moscow Interbank Currency Exchange had the Norilsk Nickel 10.67% up, and the LUKoil 11.57%. Total Yukos deals exceeded 7.9 billion Rubles, with close on three billion for the LUKoil, and 1.853 billion, Yukos, the other blue chips within a billion each.

Newsfeed
0
To participate in the discussion
log in or register
loader
Chats
Заголовок открываемого материала