The market is on an upswing, judging by its basic indices, he said to the media while commenting market ups and downs with the plight of Russia's largest petroleum company.
Mr. Vyugin ascribes market instability and uncertainty to mutually controversial information about the Yukos present and future. "The federal President and other top officials said the Yukos was to get help to keep afloat, and spoke up against its bankruptcy. On the other hand, whatever the judiciary has been doing leads to its ruination. These clashing prospects are the worst things a market can have," he remarked.
Meanwhile, the current Russian Trading System index is 560. "Not bad," says Vyugin. "It means basic indices are steady enough to buttress the market."
He largely blames speculators for market tensions. "Panic is brewing with controversial information, and circumspect holders are selling their stock for speculators to buy up. But then, speculation is normal. The market will stay nervy and bearish till explicit news appear about Yukos prospects."
As he was answering reporters' questions, the FSFR chief emphatically warned against a ban on Yukos stock trade to protect the market. "That [a ban] will violate investors' rights-some dealers may be anxious to sell their stock for any price. The move will be not unlike a deposit freeze. To suspend trade if the stock plummets real bad is the most that may be done."
Another impact on the market comes from the Central bank of Russia and the US Federal Reserve System changing their monetary and credit policies. The American system is raising interest rates, to which the Central Bank responds with nominal rouble devaluation. Many bankers accordingly change their strategies for the latter half-year to make the market uncertain and bring liquidity down, explained Oleg Vyugin.
Despite all that, the Russian stock market is "behaving very wisely-it holds on," he said.
