Still Cautious on Yukos

June 2004 | Market Strategy

After trading as low as US$5.80 last week, Russian oil giant Yukos traded as high as US$9.45 this morning. The US$9.50 area is a key resistance level for the stock, a breach of which could set up further gains. However, the stock is not out of the woods yet and a fresh rally in the stock may prove difficult to sustain. First, political risk still surrounds the firm, especially with regard to the ongoing trial of ex-CEO Mikhail Khodorkovsky. It is still far from clear how the proceeding will progress and what will eventually become of the stake held by him and the other core

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