Russia » Economics
Author`s name Ольга Савка

Up to 1000 percent possible to make on Yukos shares

The slow law-making process is obviously good to someone

The general growth of the company’s stocks made up 100 percent over the recent two months. On August 2nd Yukos shares gained 10.5 percent; on July 29th the price increased by 20 percent; on July 7th Yukos was the leader again with the 13.14 percent growth (on July 6th – 7.03 percent, June 21st – 6.94 percent). On the whole, Yukos became 300 percent cheaper over the same period. “It is possible to derive profit both from rises and falls - returns look fantastic in theory,” the newspaper Russky Kurier wrote.

Taking into consideration all fluctuations, the price of Yukos shares has changed by almost 1,000 percent over the last year. It means a $100,000 investment in Yukos could have returned one million dollars of profit. One should also have an ability to predict politicians' decisions too, though.

Yukos shares, the newspaper wrote, dropped by 21.18 percent on Friday at 1:00 p.m. That was the reaction of the stock market to the statement from court officers, who rejected the information about the permission granted to Yukos to run financial operations to support its current activities. There was no positive news after one o'clock in the afternoon, although Yukos's shares started growing. The volume of transactions showed a threefold increase as opposed to the level of the morning slide. Specialists believe someone knew the Moscow Arbitration Court was going to uphold Yukos's suit (the court ruled the actions of the court officer, who arrested Yuganskneftegaz's shares were illegal). 

According to the newspaper, over 300,000 Yukos shares (more than one million dollars) had been purchased several hours before the trade session ended. It is not too much, but a buyer will be able to make $300,000 on Monday.

Experts say Yukos stocks are best for investments on the Russian market now. Daytime fluctuations make up 20 percent and higher. It is possible to make money on it, although one should know when to buy and when to sell. This technique, the newspaper wrote, is called the 'insider information.' A lot of Western countries practice criminal responsibility for the use of this information in personal needs. It is too hard, however, for the draft law About Insider Information to go through the lower house of the Russian parliament. The head of the Federal service for financial markets Oleg Vyugin said “the Duma strongly opposed against the law, so it was decided not to interfere and prepare an updated version of the law.”

The slow law-making process is obviously good for someone. Market members start buying up Yukos shares every time before a positive piece of news about the company is released. The statistics of trade sessions also proves it. On July 29th, for example, Yukos shares gained 11-12 percent soon after the tender started. Traders showed businessmen knew about the forthcoming decision to lift the ban on the property alienation of the company's most important  industrial assets.

Officials, the newspaper wrote, often give profiteers an opportunity to make money, when the information about important decisions is published too late.

The Moscow Arbitration Court ruled today 100 percent stocks of Yukos's major extracting company Yuganskneftegaz had been arrested illegally. When the trade session opened, Yukos shares raised by 16.93 percent. The company's stocks on the Moscow Inter-Bank Currency Exchange gained 19.59 percent – up to 131.3 rubles per share.