Russian stocks continued reversing previous losses yesterday, although they closed mixed. Common and preferred RAO UES shares traded mixed as well. YUKOS led the gains adding 6 percent, as Rostelecom preferred shares led the market into red. Analysts cannot explain why YUKOS rose, as nobody believes that the Russian Tax Ministry and the company can reach any agreement, or that the Tax Ministry might decrease its claims of the company's tax fraud. Therefore, experts point to a technical correction.
RAO UES has not agreed with the government of the Khakassia Republic on the issue of the privatization of the Sayano-Shushenskaya hydro power station and is going to appeal against a recent court decision. Thus, analysts foresee further RAO UES's declines.
Aeroflot has reversed the market trend and gained for the past four weeks. The head of the company has announced the offer of acquisition two regional air carriers, namely Kuban Airlines and Samara Airlines. The agreement is likely to result in higher Aeroflot's traffic, according to analysts.
Investors will be keenly interested in today's court hearings on the YUKOS case. Analysts foresee a smoother market trend over the next several days, as the market has stabilized. They believe that the technical correction phase is underway and the RTS index might reach a level of 625-630 points in the short term.
The Federation Council may gather for the meeting on October 4 to consider new laws on the accession of new territories to Russia after the referenda