RUSSIAN STOCK MARKET SHATTERS ILLUSIONS

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MOSCOW, August 5 (RIA Novosti) - This was a bad disillusionment day in the Russian stock market. Bulls dominated morning after the Yukos petroleum mammoth announced it had regained access to current accounts, and so can afford routine transactions.

Stock came steady, midday. A flop came as the Justice Ministry offered contrasting information, afternoon-as things really were, bailiffs did not authorise the problem-obsessed company to make monthly payments, let alone deals.

The market lost its flimsy balance in an instant. The Russian Trading System index failed to get over a 555 mark, and closing time found it at 548.2-0.2% above closing time yesterday.

The day brought 138 deals to a lump US$19.9 million. None pleased bears more than the Yukos, 2.3% down. The Rostelecom rose the day's highest, 2.16%.

The greatest bids, from morning on, were made for the relatively cheap Yukos, other blue chips coming in its wake. The Justice Ministry statement, however, revived apprehensions of an impending Yukos bankruptcy to send its stock down, says Sergei Zakharov, Zerich Capital Management analyst.

Initially shooting 10% up, the Yukos finished the day several per cent down against yesterday's. Other stock plummeted next to bring the RTS index down below 550, says Maxim Shein, BrokerCreditService analytical board chief.

The ministerial sensation could not keep the Yukos low for long-its stock regained the day's initial price quite soon. The rapid rise back from today's threshold was something of a paradox, which showed that dealers did not actually believe the mammoth would be ever ruined, remarks Alexei Logvin, Interfintrade expert. Nevertheless, he regards a majority of blue chips sliding down as a bad omen. As for the latest developments on the Yukos controversy, the analyst does not think the company will keep afloat.

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